HealthEquity(US:HQY) ZACKSยท2024-09-11 14:50Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors identify stocks with the potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four main types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4] - Value Score emphasizes finding undervalued stocks using financial ratios [3] - Growth Score assesses a company's financial health and future growth potential [3] - Momentum Score capitalizes on price trends and earnings outlook changes [4] - VGM Score combines all three styles to identify stocks with the best overall characteristics [4] Zacks Rank and Performance - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in stock selection [5] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, achieving an average annual return of +25.41% since 1988 [6] - There are over 800 stocks rated 1 or 2, making it essential for investors to choose wisely [6] Stock Selection Strategy - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [7] - The direction of earnings estimate revisions is crucial in stock selection, as downward trends can indicate potential price declines [8] Company Spotlight: HealthEquity (HQY) - HealthEquity, based in Draper, UT, specializes in health-care account management solutions [9] - HQY holds a Zacks Rank of 2 (Buy) and has a VGM Score of A, indicating strong potential [9] - The stock has a Momentum Style Score of A, with a 5.1% increase in share price over the past four weeks [10] - Recent upward revisions in earnings estimates for fiscal 2025 have increased the Zacks Consensus Estimate by $0.08 to $3.08 per share, with an average earnings surprise of 19.8% [10]