Investors interested in stocks from the Medical Services sector have probably already heard of CVS Health (CVS) and HealthEquity (HQY) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision tren ...

Key Takeaways HQY launches GLP-1 telehealth platform, enabling seamless HSA payments for high-cost medications. HQY's Direct HSA enrollment taps ACA changes, expanding eligibility to 7M Americans by 2026. New initiatives strengthen HQY's ecosystem, driving growth in healthcare affordability and HAS. HealthEquity (HQY) recently unveiled two major consumer-focused initiatives — an integrated telehealth platform for GLP-1 medications and a direct HSA enrollment solution. The launch reflects a strategic respons ...

Core Insights - HealthEquity, Inc. (HQY) is experiencing growth driven by its business model and strategy, particularly in Health Savings Accounts (HSAs), following a strong second-quarter fiscal 2026 performance [1][7] - The company's shares have increased by 9.5% over the past six months, outperforming the industry growth of 3.8% and the S&P 500's increase of 28.3% [1] Company Performance - HealthEquity has a market capitalization of $8.1 billion and projects a 21.7% growth over the next five years [2] - The company has surpassed earnings estimates in three of the last four quarters, with an average surprise of 11.1% [2] - In Q2 fiscal 2026, HealthEquity reported solid top-line and bottom-line growth, with total HSA assets rising 12% year over year to $33.1 billion [7][9] Health Savings Accounts (HSAs) Growth - As of July 31, 2025, HealthEquity managed 10 million HSAs, a 6% increase year over year, with 782,000 HSAs having investments, up 10% year over year [4] - Total HSA assets reached $33.1 billion, including $17 billion in cash and $16.1 billion in investments [5] Technological Advancements - The company is advancing in AI and mobile-first transformation, enhancing efficiency and customer satisfaction through AI-powered claims adjudication and cloud migration [6][8] - HealthEquity's secure mobile app features multifactor authentication and digital wallet integration, which are expected to deepen member engagement and increase transaction volumes [8] Financial Estimates - The Zacks Consensus Estimate for fiscal 2026 earnings per share (EPS) has increased by 13 cents to $3.86, with Q3 fiscal 2026 revenue estimates at $319.9 million, reflecting a 6.5% year-over-year rise [12]

Core Insights - HealthEquity, Inc. has launched two initiatives aimed at expanding access to affordable healthcare solutions for American families during the open enrollment season [1][10] - The initiatives include a curated platform for GLP-1 weight management medications and a direct HSA enrollment platform [1][7] HSA Growth and Market Context - Health Savings Accounts (HSAs) are experiencing significant growth, with assets reaching nearly $147 billion across over 39 million accounts by the end of 2024 [2] - HSA members spent $42 billion on medical expenses in 2024, marking a 10% increase from 2023 [2] - 44% of adults are struggling to afford healthcare, highlighting the need for affordable solutions [2] New Offerings - The GLP-1 telehealth offering connects HSA members with affordable weight management solutions, addressing a rapidly growing cost category in healthcare [4][5] - GLP-1 medications account for 6.7% of total drug costs, with five GLP-1 drugs representing 21% of overall prescription costs [5] - The offering includes physician consultations, prescription management, and care coordination, all payable through HSA funds [6] Direct HSA Enrollment Platform - The direct HSA enrollment platform allows individuals to open and fund HSAs directly through HealthEquity's mobile and web platforms [7] - Recent ACA regulatory changes will make Bronze plans HSA-qualified starting in 2026, potentially making over 7 million Americans eligible for HSAs [8] - This demographic, earning between $75,000 and $120,000 annually, faces financial pressure while managing healthcare costs [8] Strategic Focus - The initiatives align with HealthEquity's mission to help individuals save, spend, and invest for health [10] - The company emphasizes the importance of integrating solutions into existing platforms to enhance accessibility and cost-saving opportunities [3][9]

Core Insights - HealthEquity, Inc. has appointed Mukund Ramachandran as Chief Marketing Officer and Garett Kitch as Senior Vice President of Client Sales & Relationship Management to enhance its strategic vision and leverage market opportunities [1][2][9] Company Developments - The appointments come as HealthEquity is experiencing record financial performance and is positioned to benefit from the largest HSA eligibility expansion in 20 years due to recent federal legislation [2][3] - The new legislation allows Direct Primary Care arrangements, low-cost telehealth services, and individual Bronze and Catastrophic ACA plans to be paired with HSAs starting January 1, 2026, creating significant market expansion opportunities [3] Executive Profiles - Mukund Ramachandran has over 25 years of experience in B2B marketing and communications, previously serving as SVP at Mastercard, where he drove global messaging and sales enablement [4][5] - Garett Kitch brings two decades of experience in sales leadership, having served as Chief Sales Officer at EverQuote and held significant roles at eHealth, Inc. and Vivint [6][7] Strategic Focus - Ramachandran will develop and execute HealthEquity's marketing strategy, focusing on product marketing and brand engagement across B2B and B2C audiences [5] - Kitch will implement a multi-year sales strategy aimed at organic growth and new client acquisition, while fostering relationships with key clients and partners [7] Technological Innovation - HealthEquity is committed to leveraging technology to enhance member and client experiences, including AI-powered solutions for claims processing and a mobile experience with 1.7 million downloads [8] - The new leadership is expected to drive the company's vision of helping Americans save, spend, and invest for health, particularly in light of the HSA expansion [9][10]

Core Insights - HealthEquity, Inc. (NASDAQ:HQY) specializes in technology-enabled services for informed healthcare spending decisions, offering solutions like health savings accounts (HSAs) [1] - The company competes with financial service providers in the healthcare sector, including UnitedHealth Group and Optum Bank [1] Performance Summary - Over the past month, HQY has gained approximately 3.64%, indicating a positive trend and investor confidence [2] - However, in the last 10 days, the stock has declined by about 5.55%, which may present a buying opportunity for investors [2] Growth Potential - HQY has an estimated stock price growth potential of 26.79%, suggesting significant appreciation in value, appealing to growth-oriented investors [3] - The company's focus on expanding services and customer base supports this optimistic outlook [3] Financial Health - HQY has a perfect Piotroski Score of 9, indicating strong financial health and operational efficiency [4] - This score reflects the company's robust financials, making it a reliable choice for investors [4] Investment Opportunity - Currently, HQY has reached a local minimum, presenting an opportune moment for investors to consider entering a position [5] - The target price for HQY is set at $117, indicating substantial upside potential from current levels [5]

Group 1 - ClearBridge Investments reported a strong rebound in U.S. equities during Q2 2025, with the S&P 500 Index returning 10.9% and the Russell 3000 Index advancing 11.0% due to improved risk sentiment following a pause in tariff implementation [1] - The ClearBridge Select Strategy outperformed its benchmark in Q2 2025, attributed to effective portfolio construction across various companies and sectors with unique growth drivers [1] - HealthEquity, Inc. (NASDAQ:HQY) was highlighted as a standout stock, with a one-month return of 3.64% and a 52-week gain of 19.01%, closing at $92.28 per share with a market capitalization of $7.951 billion on September 17, 2025 [2] Group 2 - HealthEquity, Inc. (NASDAQ:HQY) experienced a notable increase in share value due to better-than-expected quarterly revenue and raised full-year guidance, driven by strong growth in health savings accounts (HSAs) and assets [3] - Despite its potential, HealthEquity, Inc. (NASDAQ:HQY) was not among the 30 most popular stocks among hedge funds, with 40 hedge fund portfolios holding the stock at the end of Q2 2025, up from 32 in the previous quarter [4] - The company is recognized for its financial technology solutions for healthcare and spending decisions, indicating a growing interest in the health tech sector [2][3]

Group 1 - The core focus of Quad 7 Capital is to provide investment opportunities through their BAD BEAT Investing platform, emphasizing both long and short trades [1] - The team consists of 7 analysts with diverse expertise in business, policy, economics, mathematics, game theory, and sciences, aiming to educate investors on proficient trading [1] - Since May 2020, the company has maintained an average position of 95% long and 5% short, showcasing their strategic approach to market conditions [1] Group 2 - BAD BEAT Investing offers various benefits, including weekly well-researched trade ideas, access to multiple chat rooms, and daily summaries of key analyst upgrades and downgrades [2] - The platform also provides education on basic options trading and extensive trading tools to enhance investor knowledge and skills [2]

Core Insights - HealthEquity, Inc. (HQY) reported adjusted earnings per share (EPS) of $1.08 for the second quarter of fiscal 2026, exceeding the Zacks Consensus Estimate by 17.4% and showing a year-over-year improvement of 25.6% [1][9] - The company generated revenues of $325.8 million in the fiscal second quarter, beating the Zacks Consensus Estimate by 2.2% and reflecting an 8.6% increase from the prior-year quarter [2][9] - Total Health Savings Account (HSA) assets reached $33.1 billion at the end of July 31, 2025, marking a 12% year-over-year increase [4][9] Revenue Performance - Service revenues amounted to $117.9 million, up 0.9% year over year, driven by a higher number of HSAs and invested HSA assets [6] - Custodial revenues totaled $159.9 million, reflecting a 15.3% increase from the previous year [7] - Interchange revenues reached $48.1 million, up 8% year over year [7] HSA Growth Metrics - As of July 31, 2025, HealthEquity served as a non-bank custodian for 10 million HSAs, a 6% increase year over year [3] - The number of HSAs with investments rose to 782,000, up 10% year over year [3] - Total accounts, including HSAs and Consumer Direct Benefits (CDBs), reached 17.1 million [3] Margin and Profitability - Gross profit increased by 13.9% year over year to $232.6 million, with a gross margin expansion of 340 basis points to 71.4% [8] - Operating profit totaled $89.6 million, a significant increase of 52.1% from the prior-year quarter, with an operating margin expansion of 790 basis points to 27.5% [11] Financial Position - At the end of the second quarter of fiscal 2026, the company had cash and cash equivalents of $304.5 million, up from $287.9 million at the end of the first quarter [12] - Total debt at the end of the second quarter was $1.01 billion, down from $1.06 billion at the end of the first quarter [12] - Cumulative net cash provided by operating activities reached $200.6 million, compared to $173.6 million a year ago [13] Future Guidance - HealthEquity updated its revenue projections for fiscal 2026 to a range of $1.290 billion to $1.310 billion, with adjusted EPS expected to be between $3.74 and $3.91 [14]

Group 1 - The core viewpoint of the article highlights that HealthEquity (HQY), a leading non-bank custodian of health savings accounts, saw its stock price increase by 4.3% due to advancements in artificial intelligence services and expansion in the health savings account market [1] - The company has raised its performance guidance for the fiscal year 2026, indicating positive growth prospects [1] - HealthEquity expects the cash yield on health savings accounts to reach 3.5%, reflecting a strong outlook for its financial performance [1]