Trade-Ideas LLC identified HealthEquity ( HQY) as a strong and under the radar candidate. In addition to specific proprietary factors, Trade-Ideas identified HealthEquity as such a stock due to the following factors:

  • HQY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.2 million.
  • HQY has traded 128.104999999999989768184605054557323455810546875 options contracts today.
  • HQY is making at least a new 3-day high.
  • HQY has a PE ratio of 148.
  • HQY is mentioned 1.52 times per day on StockTwits.
  • HQY has not yet been mentioned on StockTwits today.
  • HQY is currently in the upper 20% of its 1-year range.
  • HQY is in the upper 35% of its 20-day range.
  • HQY is in the upper 45% of its 5-day range.
  • HQY is currently trading above yesterday's high.

'Strong and Under the Radar' stocks tend to be worthwhile stocks to watch for a variety of factors including historical back testing and price action. Market technicians refer to such stocks as being in an accumulation phase before a mark-up and peak. Traders and hedge funds have frequently found that these types of stocks continue to build a solid price base and then ultimately spike higher and peak when others 'discover' how good the stock is performing. By leveraging the social discovery aspect of StockTwits we are highlighting stocks that don't currently receive much attention from retail investors, but we suspect may soon garner more attention.

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More details on HQY:

HealthEquity, Inc. provides various solutions for managing health care accounts, health reimbursement arrangements, and flexible spending accounts for health plans, insurance companies, and third-party administrators in the United States. HQY has a PE ratio of 148. Currently there are 7 analysts that rate HealthEquity a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for HealthEquity has been 330,000 shares per day over the past 30 days. HealthEquity has a market cap of $1.9 billion and is part of the technology sector and computer software & services industry. Shares are up 33.4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates HealthEquity as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation.

Highlights from the ratings report include:
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 42.76% over the past year, a rise that has exceeded that of the S&P 500 Index.
  • The revenue growth greatly exceeded the industry average of 10.1%. Since the same quarter one year prior, revenues rose by 46.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • HQY has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 22.18, which clearly demonstrates the ability to cover short-term cash needs.
  • When compared to other companies in the Health Care Providers & Services industry and the overall market, HEALTHEQUITY INC's return on equity is below that of both the industry average and the S&P 500.

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