HQY

HealthEquity (HQY), a healthcare account management solutions provider, is highlighted as a potential growth investment pick. The company holds a #3 (Hold) Zacks Rank with a B VGM Score and B Growth Style Score, forecasting 18% year-over-year earnings growth. Two analysts recently raised earnings estimates, with the consensus estimate increasing to $4.72 per share, and the company demonstrates an average earnings surprise of +8.7%.

HealthEquity reported solid fiscal Q2 2027 results with revenues up 7.6% and adjusted EPS rising 14.8%. HSA assets reached $37.9 billion with investments growing 20% year-over-year, while AI implementation reduced service costs and improved margins to 48%.

The company raised fiscal 2027 adjusted EBITDA guidance to $628-$636 million. However, ongoing cybersecurity litigation and regulatory inquiries from a fiscal 2025 incident pose risks to future growth and profitability.