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HealthEquity (HQY) Moves 9.8% Higher: Will This Strength Last?

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HealthEquity (HQY - Free Report) shares ended the last trading session 9.8% higher at $97.95. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 8.3% gain over the past four weeks.

HealthEquity recorded a strong price rise aligning with the broader market surge following the Presidential election outcome yesterday.  While this has triggered a rally in the equity space as a whole, the market seems to be also optimistic about HealthEquity's upcoming quarterly earnings. The company is expected to post year-over-year earnings growth of 37.3% in the third quarter of fiscal 2025. Revenues are projected to grow by 18.2% from the year-ago quarter.

This provider of services for managing health care accounts is expected to post quarterly earnings of $0.71 per share in its upcoming report, which represents a year-over-year change of +18.3%. Revenues are expected to be $290.48 million, up 16.6% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For HealthEquity, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on HQY going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

HealthEquity is part of the Zacks Medical Services industry. Natera (NTRA - Free Report) , another stock in the same industry, closed the last trading session 2.1% higher at $126.97. NTRA has returned -5.7% in the past month.

Natera's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.57. Compared to the company's year-ago EPS, this represents a change of +40%. Natera currently boasts a Zacks Rank of #1 (Strong Buy).


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