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Is HealthEquity (HQY) Stock Outpacing Its Medical Peers This Year?

Zacks Equity Research
Dick's (DKS) 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.

The Medical group has plenty of great stocks, but investors should always be looking for companies 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 one of 841 companies in the Medical group. The Medical group currently sits at #1 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. HQY is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for HQY's full-year earnings has moved 1.08% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the latest available data, HQY has gained about 4.98% so far this year. In comparison, Medical companies have returned an average of 3.44%. This means that HealthEquity is performing better than its sector in terms of year-to-date returns.

Looking more specifically, HQY belongs to the Medical Services industry, a group that includes 31 individual stocks and currently sits at #85 in the Zacks Industry Rank. This group has gained an average of 12.37% so far this year, so HQY is slightly underperforming its industry in this area.

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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