NASDAQ:HQY qualifies as a high growth stock and is consolidating.

In this article we will dive into HEALTHEQUITY INC (NASDAQ:HQY) as a possible candidate for growth investing. Investors should always do their own research, but we noticed HEALTHEQUITY INC showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

Understanding NASDAQ:HQY's Growth

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:HQY, the assigned 8 reflects its growth potential:

• HQY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 62.36%, which is quite impressive.
• HQY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.50% yearly.
• HQY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.19%.
• The Revenue has been growing by 28.33% on average over the past years. This is a very strong growth!
• HQY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.28% yearly.
• Based on estimates for the next years, HQY will show a quite strong growth in Revenue. The Revenue will grow by 12.88% on average per year.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Exploring NASDAQ:HQY's Health

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 5 for health provides valuable insights:

• HQY has an Altman-Z score of 3.73. This indicates that HQY is financially healthy and has little risk of bankruptcy at the moment.
• HQY has a Altman-Z score of 3.73. This is in the better half of the industry: HQY outperforms 78.95% of its industry peers.
• A Current Ratio of 4.10 indicates that HQY has no problem at all paying its short term obligations.
• With an excellent Current ratio value of 4.10, HQY belongs to the best of the industry, outperforming 92.98% of the companies in the same industry.
• A Quick Ratio of 4.10 indicates that HQY has no problem at all paying its short term obligations.
• With an excellent Quick ratio value of 4.10, HQY belongs to the best of the industry, outperforming 92.98% of the companies in the same industry.

Understanding NASDAQ:HQY's Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:HQY, the assigned 6 is noteworthy for profitability:

• HQY's Return On Assets of 3.01% is fine compared to the rest of the industry. HQY outperforms 71.05% of its industry peers.
• HQY's Return On Equity of 4.90% is fine compared to the rest of the industry. HQY outperforms 68.42% of its industry peers.
• The last Return On Invested Capital (3.92%) for HQY is above the 3 year average (1.70%), which is a sign of increasing profitability.
• With an excellent Profit Margin value of 9.61%, HQY belongs to the best of the industry, outperforming 95.61% of the companies in the same industry.
• HQY has a Operating Margin of 16.30%. This is amongst the best in the industry. HQY outperforms 96.49% of its industry peers.
• The Gross Margin of HQY (65.06%) is better than 86.84% of its industry peers.

How do we evaluate the setup for NASDAQ:HQY?

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NASDAQ:HQY exhibits a 8 setup rating, indicating its consolidation status in recent days and weeks.

Although the technical rating is bad, HQY does present a nice setup opportunity. Prices have been consolidating lately and the volatility has been reduced. There is a support zone below the current price at 77.75, a Stop Loss order could be placed below this zone.

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.

For an up to date full technical analysis you can check the technical report of HQY

Disclaimer

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.