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Why HealthEquity Stock Soared 29.1% in February

Beth McKenna, The Motley Fool

What happened

Shares of HealthEquity (NASDAQ: HQY), a leading provider of health savings accounts (HSAs), rocketed 29.1% higher last month, according to data from S&P Global Market Intelligence. The stock is up 33% over the one-year period through March 6.

For some context, the S&P 500 index returned 3.2% in February and has returned 3.6% over the last year. 

Overhead view of a person working at a desk, showing one hand on a laptop and one pointing to charts on a paper.

Image source: Getty Images.

So what

HealthEquity stock had solid momentum throughout February, which we can probably attribute in part to investors moving money back into highly valued growth stocks starting in January after taking it out of those stocks in the last three months of 2018.

There was, however, one notable catalyst that occurred last month: On Feb. 6, HealthEquity announced its sales metrics for year-end fiscal 2019, which lifted the stock 8.6% higher the next day. The company reported that it had 4.0 million total HSA members as of Jan. 31, a 17% increase year over year. Its total custodial assets held was $8.1 billion, up 19% from the prior year.

CEO Jon Kessler said in the press release that management believes "HealthEquity has once again outpaced competitors and gained market share." 

HQY Chart

Data by YCharts.

HealthEquity stock is coming back strong in 2019, but it's still nearly 25% off its all-time closing high of $100.44, set on Nov. 7. 

HQY Chart

Data by YCharts.

Now what

Investors should be getting some material news soon. HealthEquity is slated to report its fourth-quarter and full-year results for fiscal 2019 after the market closes on Monday, March 18.

For the quarter, Wall Street is looking for earnings per share of $0.22 on revenue of $74.1 million, representing super-healthy growth of 100% and 22.6%, respectively, over the year-ago period.

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Beth McKenna has no position in any of the stocks mentioned. The Motley Fool owns shares of HealthEquity. The Motley Fool has a disclosure policy.