Prior to the fiscal fourth-quarter earnings release, HealthEquity, Inc. (NASDAQ:HQY) announced preliminary results for fiscal 2019, wherein the total number of HSAs (Health Savings Account) for which it serves as a non-bank custodian was 4 million. This reflects an increase of 17% from fiscal 2018.
Investors Cheerful
HealthEquity’s fiscal fourth-quarter preliminary results seem to impress investors. Following the announcement, share price of this Zacks Rank #3 (Hold) company climbed 2.2% to $66.45 at close.
If the company manages to outpace the Zacks Consensus Estimate in the fiscal fourth quarter, it will mark the second consecutive quarterly beat.
Over the past month, shares of HealthEquity have rallied 25.7%, higher than the industry's 12.5% growth. The current level is also higher than the S&P 500’s rally of 6.4%.
HSA Details
By the end of fiscal 2019, total custodial assets held by HSA Members totaled $8.1 billion, up 19% from the earlier year.
HealthEquity, Inc. Price and Consensus
HealthEquity, Inc. Price and Consensus | HealthEquity, Inc. Quote
In fiscal 2019, the company set a record by opening 674,000 new HSAs which helped HAS members add $1.3 billion worth of custodial assets.
Outlook
For fiscal 2019, management at HealthEquity anticipates revenues within $284 million and $287 million. The midpoint of the latest guidance of $285.5 million is above the Zacks Consensus Estimate of $284.3 million.
Adjusted earnings per share are projected between $1.13 and $1.17, higher than the Zacks Consensus Estimate of $1.12.
Additionally, the company provided fiscal 2020 revenue guidance. Revenues are expected in the range of $333 million to $339 million, below the Zacks Consensus Estimate of $341.3 million.
Key Picks
A few better-ranked stocks in the broader medical space arePenumbra, Inc. (NYSE:PEN) , Wright Medical Group N.V. (NASDAQ:WMGI) and DexCom. Inc. (NASDAQ:DXCM) .Each of these stocks currently carries a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Penumbra’s long-term earnings growth rate is expected at 20%.
Wright Medical’s long-term earnings growth rate is expected at 11%.
DexCom’s next-quarter earnings per share are projected to grow at 56.3%.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
Penumbra, Inc. (PEN): Free Stock Analysis Report
Wright Medical Group N.V. (WMGI): Get Free Report
DexCom, Inc. (DXCM): Get Free Report
HealthEquity, Inc. (HQY): Free Stock Analysis Report
Original post