Trade-Ideas LLC identified HealthEquity ( HQY) as a strong on high relative volume 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 137,785 shares today.
  • HQY is trading at 8.49 times the normal volume for the stock at this time of day.
  • HQY is trading at a new high 10.11% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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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 9. 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 386,200 shares per day over the past 30 days. HealthEquity has a market cap of $1.3 billion and is part of the technology sector and computer software & services industry. Shares are down 10.4% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates HealthEquity as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and premium valuation.

Highlights from the ratings report include:
  • HQY has underperformed the S&P 500 Index, declining 7.45% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
  • 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.
  • 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 14.42, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for HEALTHEQUITY INC is rather high; currently it is at 63.27%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 13.37% significantly outperformed against the industry average.

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