Is NASDAQ:HQY on the Verge of a Major Breakout as a Strong Growth Stock?

In this article, we'll take a closer look at HEALTHEQUITY INC (NASDAQ:HQY) as a potential candidate for growth investing. While it's important for investors to conduct their own research, HEALTHEQUITY INC has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

What does the Growth looks like for NASDAQ:HQY

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:HQY scores a 8 out of 10:

• The Earnings Per Share has grown by an impressive 62.03% over the past year.
• Measured over the past years, HQY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.50% on average per year.
• HQY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.80%.
• HQY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 28.33% yearly.
• The Earnings Per Share is expected to grow by 27.75% on average over the next years. This is a very strong growth
• HQY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.29% yearly.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

A Closer Look at Health for NASDAQ:HQY

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:HQY, the assigned 6 for health provides valuable insights:

• An Altman-Z score of 4.44 indicates that HQY is not in any danger for bankruptcy at the moment.
• The Altman-Z score of HQY (4.44) is better than 85.09% of its industry peers.
• HQY has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
• With a decent Debt to Equity ratio value of 0.44, HQY is doing good in the industry, outperforming 63.16% of the companies in the same industry.
• A Current Ratio of 4.39 indicates that HQY has no problem at all paying its short term obligations.
• The Current ratio of HQY (4.39) is better than 91.23% of its industry peers.
• A Quick Ratio of 4.39 indicates that HQY has no problem at all paying its short term obligations.
• HQY has a better Quick ratio (4.39) than 92.98% of its industry peers.

Exploring NASDAQ:HQY's Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:HQY has earned a 6 out of 10:

• HQY has a better Return On Assets (2.48%) than 68.42% of its industry peers.
• HQY's Return On Equity of 3.83% is fine compared to the rest of the industry. HQY outperforms 69.30% of its industry peers.
• The 3 year average ROIC (1.70%) for HQY is below the current ROIC(3.42%), indicating increased profibility in the last year.
• The Profit Margin of HQY (7.71%) is better than 91.23% of its industry peers.
• With an excellent Operating Margin value of 13.93%, HQY belongs to the best of the industry, outperforming 91.23% of the companies in the same industry.
• HQY has a better Gross Margin (63.48%) than 85.96% of its industry peers.

Why is NASDAQ:HQY a setup?

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NASDAQ:HQY currently holds a 8 as its setup rating, suggesting a particular level of consolidation in the stock.

Besides having an excellent technical rating, HQY also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 81.80, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

More Strong Growth stocks can be found in our Strong Growth screener.

Check the latest full fundamental report of HQY for a complete fundamental analysis.

Our latest full technical report of HQY contains the most current technical analsysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.