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Has HealthEquity (HQY) Outpaced Other Medical Stocks This Year?

Zacks Equity Research
Allegiance Bancshares (ABTX) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

For those looking to find strong Medical stocks, it is prudent to search for companies in the group that are outperforming their peers. Has HealthEquity (HQY) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Medical sector should help us answer this question.

HealthEquity is a member of our Medical group, which includes 870 different companies and currently sits at #1 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. HQY is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for HQY's full-year earnings has moved 7.72% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that HQY has returned about 6.10% since the start of the calendar year. At the same time, Medical stocks have gained an average of 5.93%. This means that HealthEquity is outperforming the sector as a whole this year.

Looking more specifically, HQY belongs to the Medical Services industry, a group that includes 33 individual stocks and currently sits at #99 in the Zacks Industry Rank. On average, stocks in this group have lost 8.37% this year, meaning that HQY is performing better in terms of year-to-date returns.

Investors in the Medical sector will want to keep a close eye on HQY as it attempts to continue its solid performance.


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