Here's Why You Should Add HealthEquity Stock to Your Portfolio Now

HealthEquity, Inc. HQY has been gaining from its business model and strategy. The optimism, led by a solid first-quarter fiscal 2025 performance and strength in Health Savings Accounts (HSAs), is expected to contribute further. However, data security threats are major concerns.In the year-to-date period, the Zacks Rank #2 (Buy) company’s shares have risen 7.2% against a 0.5% decline of the industry. The S&P 500 has increased 4.9% during the said time frame.The renowned provider of technology-enabled services platforms for healthcare savings and spending decisions has a market capitalization of $8.06 billion. The company projects 20.8% growth over the next five years and expects to witness continued improvements in its business. HealthEquity’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 12.41%.Image Source: Zacks Investment ResearchReasons Favoring HQY’s GrowthExpansion of Health Savings Accounts: HealthEquity has experienced significant growth in its HSA offerings. As of April 30, 2025, the total number of HSAs for which HealthEquity served as a non-bank custodian was 9.9 million, up 9% year over year. HealthEquity reported 770,000 HSAs with investments as of April 30, 2025, up 16% year over year. Total accounts, as of April 30, 2025, were 17.1 million, up 6.9% year over year. This uptick included total HSAs and 7.2 million CDBs, up 4.3% year over year.Total HSA assets were $31.3 billion at the end of April 30, 2025, up 15% year over year. This included $17.1 billion of HSA cash (up 7.5% year over year) and $14.2 billion of HSA investments (up 24.6% year over year). Deposits held on behalf of HealthEquity’s clients to facilitate the administration of its CDBs, from which the company generates custodial revenues, were $0.9 billion as of April 30, 2025.AI & Digital Innovation Drive Scalable Efficiency: HQY’s strategic focus on AI and mobile-first experiences is accelerating growth and margin expansion. In the fiscal first quarter, the company advanced its AI-driven claims adjudication system for real-time, human-free processing, improving efficiency and member satisfaction. AI chat support is reducing call volume while catering to digital-native users, and a shift to secure, app-based access—with over 1.2 million downloads and mandatory multifactor authentication by fall 2025, enhances user trust. New features like mobile-based brokerage investing and digital wallet integration deepen daily engagement, boosting interchange revenue and strengthening long-term loyalty and profitability.Decent Q1 Results: HealthEquity exited first-quarter fiscal 2026 with better-than-expected results. The company witnessed solid top-line and bottom-line performances in the reported quarter. Solid growth in HSAs also drove the top line. The solid uptick in total HSA assets in the reported quarter is promising. Significant improvements in operating and gross margins also bode well.The company added 150,000 new HSAs during the quarter and maintained strong enterprise pipeline momentum despite macroeconomic pressures. Per management, fraud-related costs dropped significantly from $11 million in the fourth quarter of fiscal 2025 to $3 million in the first quarter of fiscal 2026.A Factor That May Offset HQY’s GainsData Security Threats: HealthEquity deals with a high level of sensitive personal data and information. Therefore, its ability to ensure the security of its technology platforms and thus sensitive customer and partner information is critical to its operations. Any form of security breach might result in the loss of sensitive information, theft or loss of actual funds, litigation and the performance of indemnity obligations to customers.  Any consequent legal claims or proceedings could disrupt HealthEquity’s operations, damage its reputation and cause a loss of confidence in the company’s products and services, thereby adversely affecting its business.Estimate TrendHealthEquity has been witnessing a positive estimate revision trend for fiscal 2026. Over the past 30 days, the Zacks Consensus Estimate for earnings per share (EPS) has moved 10 cents upward to $3.72.The Zacks Consensus Estimate for second-quarter fiscal 2026 revenues is pegged at $319.3 million, implying a 6.5% rise from the year-ago reported number. The consensus mark for EPS is pinned at 92 cents, implying a 6.9% improvement year over year.Other Key PicksSome other top-ranked stocks in the broader medical space are Hims & Hers Health, Inc. HIMS, Cencora, Inc. COR and Integer Holdings Corporation ITGR.Hims & Hers, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 36.5%. HIMS’ earnings surpassed estimates in two of the trailing four quarters, missed once and met in the other, the average surprise being 19.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Hims & Hers’ shares have surged 99.2% compared with the industry’s 37.1% growth in the past year.Cencora, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 12.8%. COR’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6%.Cencora’s shares have rallied 23.9% against the industry’s 16.9% decline in the past year.Integer Holdings, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 18.4%. ITGR’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 2.8%.Integer Holdings’ shares have gained 4.9% against the industry’s 13% decline in the past year.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cencora, Inc. (COR): Free Stock Analysis Report HealthEquity, Inc. (HQY): Free Stock Analysis Report Integer Holdings Corporation (ITGR): Free Stock Analysis Report Hims & Hers Health, Inc. (HIMS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks