Latest news with #HQY
Forbes
4 days ago
- Business
- Forbes
How Will HealthEquity Stock React To Its Upcoming Earnings?
POLAND - 2025/02/14: In this photo illustration, the HealthEquity Inc company logo is seen displayed ... More on a smartphone screen. (Photo Illustration by Piotr Swat/SOPA Images/LightRocket via Getty Images) HealthEquity (NASDAQ:HQY), a custodian for health savings accounts, is set to announce its earnings on Tuesday, June 3, 2025. Historically, the stock has demonstrated a strong likelihood of positive returns following its earnings announcements. Over the last five years, HQY has experienced a positive one-day return after earnings in 70% of cases, with a median increase of 3.4% and a peak one-day rise of 11.6%. For traders focused on events, understanding these historical trends can be beneficial, although actual results will significantly impact stock performance. There are two main strategies to consider: Analysts expect HealthEquity to report earnings of $0.81 per share on revenue of $322 million. This is an increase compared to the previous year's quarter, which recorded earnings of $0.80 per share on revenue of $288 million. From a fundamental view, HealthEquity currently boasts a market capitalization of $8.7 billion. Over the past twelve months, the company generated $1.2 billion in revenue and was operationally profitable, reporting $203 million in operating profits and a net income of $97 million. Therefore, if you are looking for growth with lower volatility than individual stocks, the Trefis High Quality portfolio offers an alternative—having outperformed the S&P 500 and delivering returns exceeding 91% since its inception. Additionally, see – Buy, Sell, or Hold HIMS Stock? View earnings reaction history of all stocks Some insights on one-day (1D) post-earnings returns: Additional data for 5-Day (5D) and 21-Day (21D) returns observed post-earnings are summarized along with the statistics in the table below. HQY 1D, 5D, and 21D Post-Earnings Return A relatively less risky strategy (although not effective if the correlation is low) involves understanding the correlation between short-term and medium-term returns following earnings, identifying a pair with the highest correlation, and executing the appropriate trade. For instance, if 1D and 5D exhibit the highest correlation, a trader can take a 'long' position for the next 5 days if the 1D post-earnings return is positive. Here is some correlation data based on 5-year and 3-year (more recent) history. Note that the correlation 1D_5D refers to the correlation between 1D post-earnings returns and subsequent 5D returns. HQY Correlation Between 1D, 5D, and 21D Historical Returns Discover more about Trefis RV strategy that has outperformed its all-cap stocks benchmark (a combination of all three: the S&P 500, S&P mid-cap, and Russell 2000), delivering strong returns for investors. Furthermore, if you're seeking upside with a more stable performance than an individual stock like HealthEquity, consider the High Quality portfolio, which has outperformed the S&P and achieved returns greater than 91% since its inception.
Yahoo
21-05-2025
- Business
- Yahoo
MD vs. HQY: Which Stock Is the Better Value Option?
Investors looking for stocks in the Medical Services sector might want to consider either Pediatrix Medical Group (MD) or HealthEquity (HQY). But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look. We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits. Currently, both Pediatrix Medical Group and HealthEquity are holding a Zacks Rank of # 2 (Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is only part of the picture for value investors. Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels. Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years. MD currently has a forward P/E ratio of 9.70, while HQY has a forward P/E of 28.08. We also note that MD has a PEG ratio of 1.02. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. HQY currently has a PEG ratio of 1.38. Another notable valuation metric for MD is its P/B ratio of 1.65. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, HQY has a P/B of 4.15. These metrics, and several others, help MD earn a Value grade of B, while HQY has been given a Value grade of C. Both MD and HQY are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that MD is the superior value option right now. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pediatrix Medical Group, Inc. (MD) : Free Stock Analysis Report HealthEquity, Inc. (HQY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
11-04-2025
- Business
- Yahoo
HealthEquity, Inc. (NASDAQ:HQY): A Bull Case Theory
We came across a bullish thesis on HealthEquity, Inc. (NASDAQ:HQY) on ValueInvestorsClub by Fat_Tony. In this article, we will summarize the bulls' thesis on HQY. The company's shares were trading at $111.75 when this thesis was published, vs. the closing price of $79.94 on Apr 10. 15 States with the Best Healthcare in the US HQY provides technology-enabled service platforms to individuals for making health saving and spending decisions, paying healthcare bills, receiving personalized benefit information, earning wellness incentives, growing their savings, and making investment choices. It is one of the leading Health Savings Account (HSA) providers. The HSA asset base has witnessed mid-teens growth over the years but is expected to offer a more stable mid to high single-digit rate in the future. The opportunity still exists in a seemingly mature market where only 37 million of the 110 million households have HSA accounts. HQY has been an outperformer in this segment, capturing 27% of the account share. The number of HSA accounts for HQY grew by 13%, much higher than the mid-single-digit growth of the industry. The existing Republican government is also expected to frame regulations that are expected to grow the HSA corpus in a bid to 'denationalize' healthcare. Modifications to the HOPE Act should make more people eligible for HSA accounts. These include veterans at Veterans Affairs facilities and elderly people availing Medicare through their Social Security benefits. The limit for contribution towards HSA is also expected to rise from $4.15k to $7.5k per person. There may also be an expansion to the services for which funds in the HSA can be used. Direct Primary Care, funeral expenses and gym membership can be brought under the coverage of HSA. HQY has been able to grow the cash balance at 13-14% in the last five years and has deposited these funds in 5-year term deposits or CDs. Lately, the funds are invested in annuities, allowing HQY to earn the 5-year Treasury rate + 75 bps compared to the 5-year Treasury rate + 10 bps when it was held in banks. The current mix is 45:55 in favor of annuities expected to change to 15:85 in the next few years. This conversion in the portfolio should increase EPS by 65% in the next five years. While the consensus EPS for 2027 is $4.76, HQY can easily achieve an EPS of $6 with its current growth rate and portfolio reconstruction. This offers a P/E of ~14x at its current price, making it an attractively priced stock. While we acknowledge the potential of HQY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HQY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
20-03-2025
- Business
- Yahoo
Why HealthEquity Inc. (HQY) Went Down On Thursday?
We recently published a list of . In this article, we are going to take a look at where HealthEquity Inc. (NASDAQ:HQY) stands against other Wednesday's worst performers. Shares on Wall Street bounced back from a bloodbath, with all main indices ending in the green on Wednesday, as investors cheered the Federal Reserve's decision to keep interest rates unchanged. The tech-heavy Nasdaq led the gains, rallying 1.41 percent, followed by the S&P 500 with a 1.08 percent gain, and the Dow Jones, by 0.92 percent. Meanwhile, 10 companies defied overall market optimism, booking losses during the trading session. In this article, let's take a look at the 10 worst-performing stocks and explore the reasons behind their drop. To come up with the list, we considered only the companies with a $2-billion market capitalization and $5 million in trading volume. An online investment platform, showing stocks, index funds, and a mutual fund investment platform. HealthEquity Inc. (NASDAQ:HQY) HealthEquity fell by 17.07 percent on Wednesday to end at $84.32 each after missing earnings estimates in its latest earnings performance. In the fourth quarter of fiscal year 2025, HQY reported earnings per share of 69 cents, missing the Zacks Consensus Estimate by 2.82 percent. The bottom line, however, improved 9.5 percent on a year-on-year basis. Revenues, on the other hand, came in at $311.8 million, higher by 18.8 percent year-on-year, and beating Zacks Consensus Estimate by 2.2 percent. For fiscal year 2026, HQY said it expected revenues to settle between $1.28 billion and $1.30 billion. Adjusted EPS, meanwhile, is expected to settle between $3.57 to $3.74. Overall, HQY ranks 1st on our list of Wednesday's worst performers. While we acknowledge the potential of HQY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as HQY but trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires Disclosure: None. This article is originally published at Insider Monkey.
