HealthEquity (HQY - Free Report) closed at $77.80 in the latest trading session, marking a -0.13% move from the prior day. This change lagged the S&P 500's daily gain of 0.08%. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq gained 0.38%.
Prior to today's trading, shares of the provider of services for managing health care accounts had gained 23.18% over the past month. This has outpaced the Medical sector's loss of 3.76% and the S&P 500's loss of 3.57% in that time.
Wall Street will be looking for positivity from HQY as it approaches its next earnings report date. On that day, HQY is projected to report earnings of $0.35 per share, which would represent year-over-year growth of 2.94%. Meanwhile, our latest consensus estimate is calling for revenue of $85.38 million, up 20.14% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.33 per share and revenue of $343.27 million. These totals would mark changes of +11.76% and +19.5%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for HQY. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% higher. HQY is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note HQY's current valuation metrics, including its Forward P/E ratio of 58.68. This valuation marks a premium compared to its industry's average Forward P/E of 21.69.
We can also see that HQY currently has a PEG ratio of 2.91. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Medical Services stocks are, on average, holding a PEG ratio of 1.52 based on yesterday's closing prices.
The Medical Services industry is part of the Medical sector. This group has a Zacks Industry Rank of 81, putting it in the top 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.