Why NASDAQ:HQY Is a Standout High-Growth Stock in a Consolidation Phase.

Exploring Growth Potential: HEALTHEQUITY INC (NASDAQ:HQY) and Its Base Formation. Growth investors seek promising revenue and EPS growth, and HEALTHEQUITY INC has come under our scrutiny for potential growth investing. While it's crucial to do your own research, we've detected HEALTHEQUITY INC on our screen for growth with base formation, suggesting it merits a closer look.

Growth Assessment of NASDAQ:HQY

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:HQY boasts a 8 out of 10:

• The Earnings Per Share has grown by an impressive 62.36% over the past year.
• The Earnings Per Share has been growing by 13.50% on average over the past years. This is quite good.
• 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 25.15% yearly.
• Based on estimates for the next years, HQY will show a quite strong growth in Revenue. The Revenue will grow by 13.30% on average per year.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Assessing Health Metrics 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:

• HQY has an Altman-Z score of 4.54. This indicates that HQY is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 4.54, HQY belongs to the best of the industry, outperforming 84.07% 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 92.04% 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.
• Looking at the Quick ratio, with a value of 4.10, HQY belongs to the top of the industry, outperforming 92.04% of the companies in the same industry.

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 (3.01%) than 72.57% of its industry peers.
• HQY has a Return On Equity of 4.90%. This is in the better half of the industry: HQY outperforms 67.26% 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.
• Looking at the Profit Margin, with a value of 9.61%, HQY belongs to the top of the industry, outperforming 94.69% 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 95.58% of its industry peers.
• Looking at the Gross Margin, with a value of 65.06%, HQY belongs to the top of the industry, outperforming 86.73% of the companies in the same industry.

How do we evaluate the setup for NASDAQ:HQY?

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NASDAQ:HQY is 8:

Besides having an excellent technical rating, HQY also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. We notice that large players showed an interest for HQY in the last couple of days, which is a good sign. Very recently a Pocket Pivot signal was observed. This is another positive sign.

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

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.