NASDAQ:HQY—Positioned as a High-Growth Stock, Ready for a Potential Breakout.

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if HEALTHEQUITY INC (NASDAQ:HQY) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted HEALTHEQUITY INC showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Evaluating Growth: NASDAQ:HQY

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:HQY has earned a 8 for growth:

• The Earnings Per Share has grown by an impressive 62.36% over the past year.
• HQY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.50% yearly.
• Looking at the last year, HQY shows a quite strong growth in Revenue. The Revenue has grown by 17.19% in the last year.
• The Revenue has been growing by 28.33% on average over the past years. This is a very strong growth!
• The Earnings Per Share is expected to grow by 25.60% on average over the next years. This is a very strong growth
• The Revenue is expected to grow by 13.32% on average over the next years. This is quite good.
• 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.

How We Gauge 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:

• HQY has an Altman-Z score of 4.58. This indicates that HQY is financially healthy and has little risk of bankruptcy at the moment.
• HQY has a better Altman-Z score (4.58) than 84.40% of its industry peers.
• 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 has a better Current ratio (4.10) than 91.74% of its industry peers.
• A Quick Ratio of 4.10 indicates that HQY has no problem at all paying its short term obligations.
• HQY has a Quick ratio of 4.10. This is amongst the best in the industry. HQY outperforms 91.74% of its industry peers.

Evaluating Profitability: NASDAQ:HQY

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:

• With a decent Return On Assets value of 3.01%, HQY is doing good in the industry, outperforming 71.56% of the companies in the same industry.
• HQY has a Return On Equity of 4.90%. This is in the better half of the industry: HQY outperforms 64.22% 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 92.66% of its industry peers.
• HQY has a Operating Margin of 16.30%. This is amongst the best in the industry. HQY outperforms 94.50% of its industry peers.
• HQY's Gross Margin of 65.06% is amongst the best of the industry. HQY outperforms 88.07% of its industry peers.

How does the Setup look for NASDAQ:HQY

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:HQY scores a 8 out of 10:

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 resistance zone just above the current price starting at 104.25. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 100.20, a Stop Loss order could be placed below this zone.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

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

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

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.