In the latest trading session, HealthEquity (HQY) closed at $81.91, marking a +0.92% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.26%. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq lost 0.24%.
Prior to today's trading, shares of the provider of services for managing health care accounts had gained 26.32% over the past month. This has outpaced the Medical sector's loss of 2.01% and the S&P 500's gain of 2.87% in that time.
Wall Street will be looking for positivity from HQY as it approaches its next earnings report date. In that report, analysts expect HQY to post earnings of $0.35 per share. This would mark year-over-year growth of 2.94%. Our most recent consensus estimate is calling for quarterly revenue of $85.38 million, up 20.14% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.33 per share and revenue of $343.27 million, which would represent changes of +11.76% and +19.5%, respectively, from the prior year.
Any recent changes to analyst estimates for HQY should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% higher. HQY is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, HQY is currently trading at a Forward P/E ratio of 61.14. This valuation marks a premium compared to its industry's average Forward P/E of 22.31.
Meanwhile, HQY's PEG ratio is currently 3.03. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical Services was holding an average PEG ratio of 1.64 at yesterday's closing price.
The Medical Services industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 79, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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