Core Insights - HealthEquity's HSAnswers has won multiple prestigious awards for its innovative approach to healthcare benefits education, utilizing AI technology to enhance accessibility and reliability for users [1][3]. Group 1: Product Overview - HSAnswers is an AI-powered tool designed to provide quick and reliable answers to questions regarding Health Savings Accounts (HSAs) and other consumer-directed benefits (CDBs) [2]. - The tool has facilitated hundreds of thousands of conversations since its launch in October 2024, addressing both simple and complex inquiries related to healthcare benefits [4]. Group 2: Industry Recognition - HSAnswers has received notable accolades, including the 2025 AI Breakthrough Awards for Informational Bot Solution of the Year and two Globee Silver Awards for AI achievements in healthcare [3]. Group 3: Market Demand and Impact - A significant 73% of employees express a need for improved benefits education, highlighting the tool's relevance in addressing real-world consumer questions [4]. - The tool leverages over 500 curated educational resources and 20 years of industry expertise, ensuring users receive reliable and contextually relevant information [6]. Group 4: Accessibility and Future Development - HSAnswers is freely available to a wide audience, including current and prospective HealthEquity members, benefits administrators, and health plan partners [7]. - The company plans to continue investing in HSAnswers, aiming to incorporate more sophisticated use cases to enhance user experience in the future [6].

Core Insights - HealthEquity (HQY) is expected to report quarterly earnings of $0.92 per share, reflecting a year-over-year increase of 7% [1] - Revenue is anticipated to reach $318.81 million, which is a 6.3% increase from the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a reevaluation of initial estimates by analysts [1] Revenue Estimates - 'Revenue- Service' is projected to be $116.04 million, indicating a year-over-year decrease of 0.6% [4] - 'Revenue- Custodial' is expected to be $155.15 million, reflecting an increase of 11.9% year over year [4] - 'Revenue- Interchange' is estimated to reach $46.74 million, showing a 5% increase from the prior-year quarter [4] HSA Metrics - 'Total HSA Assets' are likely to reach $32.48 billion, up from $29.47 billion in the same quarter last year [5] - 'Total HSA investments' are estimated at $14.78 billion, compared to $13.10 billion a year ago [5] - 'CDBs Accounts' are projected to be 6.88 million, slightly down from 6.90 million in the previous year [6] Account Projections - 'Total Accounts' are expected to reach 16.97 million, an increase from 16.28 million year over year [6] - 'Total HSA cash' is projected to be $17.70 billion, up from $16.37 billion in the same quarter last year [6] - 'HSAs Accounts' are estimated at 10.10 million, compared to 9.38 million a year ago [7] Stock Performance - Over the past month, shares of HealthEquity have returned -6.7%, while the Zacks S&P 500 composite has increased by 1.3% [7] - Currently, HQY holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [7]

Core Insights - HealthEquity, Inc. (HQY) is experiencing growth driven by its business model and strategy, particularly in Health Savings Accounts (HSAs), despite facing data security threats [1][8] - The company's shares have declined 7% year-to-date, underperforming the industry and contrasting with a 9.5% increase in the S&P 500 [1] Company Performance - HealthEquity has a market capitalization of $8.04 billion and projects a 20.8% 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 12.41% [2] HSA Growth - As of April 30, 2025, HealthEquity managed 9.9 million HSAs, a 9% increase year-over-year, with 770,000 HSAs having investments, up 16% [3] - Total HSA assets reached $31.3 billion, reflecting a 15% year-over-year increase, including $17.1 billion in HSA cash (up 7.5%) and $14.2 billion in HSA investments (up 24.6%) [4] Technological Advancements - The company's focus on AI and mobile-first strategies is enhancing efficiency and engagement, with over 1.2 million app downloads and a shift to secure app-based access [5] - AI-driven systems are improving claims processing and reducing call volumes, contributing to member satisfaction and operational efficiency [5] Recent Financial Results - HealthEquity reported strong first-quarter fiscal 2026 results, with significant growth in both top and bottom lines, and a reduction in fraud-related costs from $11 million to $3 million [6][7] - The company added 150,000 new HSA accounts in the first quarter, contributing to the overall growth in total HSA assets [6] Estimate Trends - There has been a positive revision trend for fiscal 2026 earnings estimates, with the Zacks Consensus Estimate for EPS increasing by 3 cents to $3.73 [9] - The consensus estimate for second-quarter fiscal 2026 revenues is $318.8 million, indicating a 6.3% rise year-over-year, while EPS is expected to improve by 6.9% [9]

Core Insights - HealthEquity Community Foundation announced a total of $50,000 in funding awarded to 20 nonprofit organizations in the summer 2025 grant cycle, supporting various operational activities including food, clothing, and medical care [1] - The foundation has increased funding across its core focus areas, with a notable 50% increase in support for mental health initiatives since the first funding round [3] - The foundation will welcome a new president, Stephanie Larsen, later this year, who has over a decade of experience at HealthEquity and a strong public health background [4] Funding and Support - The funding will assist vulnerable populations by providing free dental, vision, and medical care, addressing immense demand for these services [2] - The next grant cycle is currently open for eligible 501(c)(3) organizations to apply until September 30, 2025 [5] - The foundation plans to provide additional funding rounds twice each year, emphasizing its commitment to community wellness [6] Organizational Overview - HealthEquity administers HSAs and various consumer-directed benefits for over 17 million accounts, partnering with employers and benefits advisors to enhance healthcare consumer empowerment [7]

Core Insights - The HealthEquity Community Foundation has awarded a total of $50,000 in grants to 20 nonprofit organizations focused on physical and mental health, financial literacy, and basic needs [1][3] - The foundation has seen a 50% increase in funding for mental health initiatives since its first round of funding, reflecting its commitment to holistic community wellness [3] - A new leader, Stephanie Larsen, will take over as president later this year, succeeding Dale Miller, who has been instrumental in launching the foundation [4][5] Funding and Support - The funding will support various operational activities, including providing food, clothing, and expert medical care to vulnerable populations [1][2] - The next grant cycle is open for applications until September 30, 2025, encouraging eligible 501(c)(3) organizations to apply [5] Organizational Impact - The foundation aims to connect health and financial well-being, particularly among underserved groups, as it continues to grow and innovate [5] - HealthEquity administers HSAs and other consumer-directed benefits for over 17 million accounts, partnering with employers and benefits advisors to improve health outcomes [7][8]

Core Insights - Organon (OGN) is currently more attractive to value investors compared to HealthEquity (HQY) based on various financial metrics and Zacks Rank [3][7]. Valuation Metrics - OGN has a forward P/E ratio of 2.38, significantly lower than HQY's forward P/E of 24.60 [5]. - The PEG ratio for OGN is 0.90, while HQY's PEG ratio stands at 1.18, indicating OGN's better valuation relative to its expected earnings growth [5]. - OGN's P/B ratio is 3.23, compared to HQY's P/B ratio of 3.74, further supporting OGN's more favorable valuation [6]. Zacks Rank and Style Scores - OGN holds a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook, while HQY has a Zacks Rank of 3 (Hold) [3]. - OGN has a Value grade of A, whereas HQY has a Value grade of C, reflecting OGN's superior valuation metrics [6].

Core Viewpoint - HealthEquity, Inc. plans to release its second quarter fiscal 2026 financial results on September 2, 2025, followed by a conference call for investors to discuss the results [1] Financial Results Announcement - The financial results will be released after the close of regular stock market trading hours on September 2, 2025 [1] - A conference call will be held at 4:30 p.m. Eastern Time on the same day to review the financial results [2] Upcoming Investor Conferences - HealthEquity management will present and meet with investors at several upcoming conferences: - Wells Fargo 2025 Healthcare Conference on September 3, 2025, at 8:00 a.m. Eastern Time [3] - Jefferies 2025 Fintech Conference on September 4, 2025, at 10:40 a.m. Eastern Time [4] - Morgan Stanley 23 Annual Global Healthcare Conference on September 8, 2025, at 10:45 a.m. Eastern Time [5] - Baird 2025 Global Healthcare Conference on September 9, 2025, at 2:00 p.m. Eastern Time [6] - Deutsche Bank's 2025 Healthcare Summit on September 10, 2025, with one-on-one meetings scheduled [7][8] Company Overview - HealthEquity administers health savings accounts (HSAs) and other consumer-directed benefits for over 17 million accounts [8] - The company collaborates with employers, benefits advisors, and health and retirement plan providers to empower healthcare consumers [8]

Core Insights - Zacks Premium offers tools for investors to enhance their stock market engagement and confidence through various resources like daily updates, research reports, and stock screens [1] Zacks Style Scores - Zacks Style Scores are indicators designed to help investors select stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum [2] - The Value Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [3] - The Growth Score assesses a company's financial health and future potential through projected earnings and sales growth [4] - The Momentum Score identifies optimal times to invest based on price trends and earnings estimate changes [5] - The VGM Score combines the three Style Scores to highlight stocks with attractive value, growth potential, and positive momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investors, with 1 (Strong Buy) stocks achieving an average annual return of +23.62% since 1988, significantly outperforming the S&P 500 [7] - There are typically over 800 stocks rated 1 or 2, making it essential for investors to use Style Scores to narrow down their choices [8] - To maximize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with lower ranks, even with good Style Scores, may still face downward price pressure due to negative earnings outlooks [10] Company Spotlight: HealthEquity (HQY) - HealthEquity, based in Draper, UT, provides integrated healthcare account management solutions and is rated 2 (Buy) with a VGM Score of B [11] - The company is positioned well for growth, with a Growth Style Score of B and a projected year-over-year earnings growth of 19.6% for the current fiscal year [12] - Recent analyst revisions have increased the earnings estimate for fiscal 2026 by $0.11 to $3.73 per share, alongside an average earnings surprise of +12.4% [12]

Core Viewpoint - HealthEquity (HQY) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which have a strong correlation with near-term stock price movements [4][6]. - Rising earnings estimates for HealthEquity suggest an improvement in the company's underlying business, likely leading to increased stock prices [5][10]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with a proven track record of performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7][9]. - Only the top 20% of Zacks-covered stocks receive a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [10]. HealthEquity's Earnings Estimates - HealthEquity is expected to earn $3.73 per share for the fiscal year ending January 2026, with no year-over-year change [8]. - Over the past three months, the Zacks Consensus Estimate for HealthEquity has increased by 8.8%, reflecting analysts' positive revisions [8].

Core Insights - The article compares GoodRx Holdings, Inc. (GDRX) and HealthEquity (HQY) to determine which stock is more attractive to value investors [1] - GDRX has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while HQY has a Zacks Rank of 3 (Hold) [3] Valuation Metrics - GDRX has a forward P/E ratio of 12.80, significantly lower than HQY's forward P/E of 27.57 [5] - The PEG ratio for GDRX is 1.15, while HQY's PEG ratio is 1.32, suggesting GDRX is more favorably valued considering expected earnings growth [5] - GDRX's P/B ratio is 2.64 compared to HQY's P/B of 4.2, further indicating GDRX's relative undervaluation [6] Value Grades - GDRX has earned a Value grade of B, while HQY has a Value grade of D, highlighting GDRX's superior valuation metrics [6] - The combination of solid earnings outlook and favorable valuation figures positions GDRX as the better value option currently [6]