Why NASDAQ:HQY Is a Promising High-Growth Stock in the Midst of Consolidation.

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.

Growth Assessment of NASDAQ:HQY

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:HQY has achieved a 8 out of 10:

• 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.
• 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.
• Looking at the last year, HQY shows a quite strong growth in Revenue. The Revenue has grown by 17.19% in the last year.
• Measured over the past years, HQY shows a very strong growth in Revenue. The Revenue has been growing by 28.33% on average per year.
• Based on estimates for the next years, HQY will show a very strong growth in Earnings Per Share. The EPS will grow by 25.28% on average per year.
• The Revenue is expected to grow by 12.96% on average over the next years. This is quite good.
• 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 utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:HQY has earned a 6 out of 10:

• An Altman-Z score of 3.95 indicates that HQY is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 3.95, HQY belongs to the best of the industry, outperforming 81.58% of the companies in the same industry.
• HQY has a Current Ratio of 4.10. This indicates that HQY is financially healthy and has no problem in meeting its short term obligations.
• HQY's Current ratio of 4.10 is amongst the best of the industry. HQY outperforms 92.98% of its industry peers.
• HQY has a Quick Ratio of 4.10. This indicates that HQY is financially healthy and has no problem in meeting its short term obligations.
• HQY has a better Quick ratio (4.10) than 92.98% of its industry peers.

Profitability Examination for NASDAQ:HQY

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:HQY has achieved a 6:

• HQY has a better Return On Assets (3.01%) than 71.05% of its industry peers.
• HQY has a better Return On Equity (4.90%) than 67.54% 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.
• HQY has a better Profit Margin (9.61%) than 95.61% of its industry peers.
• HQY has a better Operating Margin (16.30%) than 96.49% of its industry peers.
• HQY has a better Gross Margin (65.06%) than 86.84% of its industry peers.

How do we evaluate the setup for NASDAQ:HQY?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:HQY has a 7 as its setup rating:

Although HQY has an excellent technical rating, the quality of the presented setup is not ideal at the moment. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

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

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

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.