XAutoplay: On | OffHealthEquity has a 95 Composite Rating, which means the Utah-based company is outpacing 95% of all stocks in terms of the most important stock-picking criteria, such as earnings and sales growth, profit margins and institutional sponsorship.
Alphabet is still in buy range after breaking out on a strong Q3 earnings report, while CarMax, which also jumped on its latest report in September, may be setting up a follow-on buying opportunity.
90% Earnings Growth
HealthEquity soundly beat analyst estimates for its fiscal 2017 Q2 (ended July 31), when it reported a jump in earnings growth from 27% to 31%. Revenue also rose, from 26% to 29%.
The company, which provides online platforms for customers to manage their health savings accounts, has been growing EPS at a 90% annual clip over the last three years. Sales have risen at a 41% rate during the same period.
HealthEquity also sports a solid 25% annual pretax profit margin.
Institutional demand for shares is reflected in a B Accumulation/Distribution Rating, 1.3 Up/Down Volume Ratio and six quarters of rising fund ownership.
HealthEquity is expected to report Q3 numbers in early December, with analysts looking for a 30% gain in earnings.
Third’s The Charm?
HealthEquity was last featured in the IBD Stock Analysis on Oct. 6, just before it pulled back to add a handle to its current base and create a new buy point at 52.97.
The stock has launched two failed breakouts since January, so keep that in mind if the stock breaks out for a third time.
HealthEquity found good support at its 50-day line on Oct. 25 and has continued to climb since then, retaking its 10-day moving average along the way.
In morning trade Thursday, the stock was up around 1% in light volume, putting it just 4% below the entry.
Look for HealthEquity to clear the buy point in volume at least 40% above average.
This post was originally published on *this site*