Back to top
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Image: Bigstock
HealthEquity (HQY): Strong Buy on Impressive Q4 Earnings
On May 24, Zacks Investment Research raised HealthEquity Inc. (HQY - Free Report) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
The upgrade was primarily driven by HealthEquity’s strong fourth-quarter fiscal 2016 results. As announced earlier, total number of health savings account (HSA) members – for which the company serves as a non-bank custodian – increased 50% to 2.1 million as of Jan 31, 2016. Total assets under management (AUM) surged 56% year over year to $3.7 billion.
At the end of fiscal 2016, HealthEquity had 513 network partners, which is a significant increase from 340 recorded at the end of fiscal 2015.
Revenues surged 44% year over year to $35.9 million in the quarter. The company reported adjusted earnings of a nickel, which beat the Zacks Consensus Estimate by a penny. Notably, the company posted an average positive surprise of 9.38% over the last four quarters.
HealthEquity provided a positive fiscal 2017 guidance. Revenues are expected in the range of $170--$174 million as compared to $126.8 million reported in fiscal 2016. Adjusted earnings are now forecasted in the range of 45—47 cents, much better than 28 cents reported in fiscal 2016.
Estimate Revision
The Zacks Consensus Estimates for fiscal 2017 and 2018 are currently pegged at 46 cents and 61 cents per share, which have remained steady over the last 30 days.
Other Stocks to Consider
One may also consider other favorably ranked stocks like Air Methods , AMN Healthcare and Masimo Corporation (MASI - Free Report) in the same space. All the three stocks sport a Zacks Rank #1 (Strong Buy).
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 >>