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HealthEquity (HQY) New Tie Up to Meet Clients' Healthcare Needs
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HealthEquity, Inc. (HQY - Free Report) recently collaborated with Microsoft to modernize healthcare benefit administration through Microsoft Azure. The company’s investment in Azure advances its cloud-first strategy to unite, simplify and modernize its technology capabilities to support the healthcare needs of clients and members.
The latest partnership is expected to significantly solidify HealthEquity’s foothold in the cloud-based services space across the nation.
Rationale Behind the Tie Up
HealthEquity is expected to be able to solve problems and provide solutions in a wide range of programming languages, frameworks, operating systems and devices, using known tools, with Azure. HealthEquity’s management believes that partnering with Microsoft will likely aid the company to power seamless experiences at every client and member interaction.
Microsoft’s management feels that with more customers expecting a simple, seamless technology experience, whether at home or at the office, the partnership with HealthEquity will likely aid in harnessing the power of Microsoft Azure to help transform customers’ benefits experiences.
Industry Prospects
Per a report by Allied Market Research, the global cloud services market was valued at $551.8 billion in 2021 and is anticipated to reach $2.5 trillion by 2031 at a CAGR of 16.6%. Factors like cost-effectiveness and the increasing acceptance of cloud platform services are expected to drive the market.
Given the market potential, HealthEquity’s latest collaboration seems to have been timed well.
Notable Development
Last month, HealthEquity reported its fourth-quarter fiscal 2023 results, wherein it witnessed solid top-line and bottom-line performances. The top line benefited from robust contributions from all its revenue sources. Solid growth in health savings accounts (HSAs) also drove the top line. The solid uptick in total active HSA assets in the reported quarter was also recorded.
Price Performance
Shares of HealthEquity have lost 11.8% in the past year compared with the industry’s 30.5% decline and the S&P 500's 9.9% fall.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Currently, HealthEquity carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Hologic, Inc. (HOLX - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Masimo Corporation (MASI - Free Report) .
Hologic, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 15.2%. HOLX’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 30.6%.
Hologic has gained 3.6% against the industry’s 17.1% decline in the past year.
Cardinal Health, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11.6%. CAH’s earnings surpassed estimates in two of the trailing four quarters and lagged the same in the other two, the average beat being 6.4%.
Cardinal Health has gained 34.3% against the industry’s 5.8% decline over the past year.
Masimo, carrying a Zacks Rank #2 at present, has an estimated growth rate of 3.5% for 2023. MASI’s earnings surpassed estimates in all the trailing four quarters, the average beat being 9%.
Masimo has gained 23.5% against the industry’s 17.1% decline over the past year.
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HealthEquity (HQY) New Tie Up to Meet Clients' Healthcare Needs
HealthEquity, Inc. (HQY - Free Report) recently collaborated with Microsoft to modernize healthcare benefit administration through Microsoft Azure. The company’s investment in Azure advances its cloud-first strategy to unite, simplify and modernize its technology capabilities to support the healthcare needs of clients and members.
The latest partnership is expected to significantly solidify HealthEquity’s foothold in the cloud-based services space across the nation.
Rationale Behind the Tie Up
HealthEquity is expected to be able to solve problems and provide solutions in a wide range of programming languages, frameworks, operating systems and devices, using known tools, with Azure. HealthEquity’s management believes that partnering with Microsoft will likely aid the company to power seamless experiences at every client and member interaction.
Microsoft’s management feels that with more customers expecting a simple, seamless technology experience, whether at home or at the office, the partnership with HealthEquity will likely aid in harnessing the power of Microsoft Azure to help transform customers’ benefits experiences.
Industry Prospects
Per a report by Allied Market Research, the global cloud services market was valued at $551.8 billion in 2021 and is anticipated to reach $2.5 trillion by 2031 at a CAGR of 16.6%. Factors like cost-effectiveness and the increasing acceptance of cloud platform services are expected to drive the market.
Given the market potential, HealthEquity’s latest collaboration seems to have been timed well.
Notable Development
Last month, HealthEquity reported its fourth-quarter fiscal 2023 results, wherein it witnessed solid top-line and bottom-line performances. The top line benefited from robust contributions from all its revenue sources. Solid growth in health savings accounts (HSAs) also drove the top line. The solid uptick in total active HSA assets in the reported quarter was also recorded.
Price Performance
Shares of HealthEquity have lost 11.8% in the past year compared with the industry’s 30.5% decline and the S&P 500's 9.9% fall.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Currently, HealthEquity carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Hologic, Inc. (HOLX - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Masimo Corporation (MASI - Free Report) .
Hologic, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 15.2%. HOLX’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 30.6%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Hologic has gained 3.6% against the industry’s 17.1% decline in the past year.
Cardinal Health, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 11.6%. CAH’s earnings surpassed estimates in two of the trailing four quarters and lagged the same in the other two, the average beat being 6.4%.
Cardinal Health has gained 34.3% against the industry’s 5.8% decline over the past year.
Masimo, carrying a Zacks Rank #2 at present, has an estimated growth rate of 3.5% for 2023. MASI’s earnings surpassed estimates in all the trailing four quarters, the average beat being 9%.
Masimo has gained 23.5% against the industry’s 17.1% decline over the past year.