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 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 Viewpoint - HealthEquity (HQY) shares have declined approximately 10.4% over the past month, underperforming the S&P 500, raising questions about the potential for a breakout or continued negative trend leading up to the next earnings release [1] Group 1: Earnings Report and Estimates - The consensus estimate for HealthEquity has increased by 8.01% over the past month, indicating a positive trend in estimates [2] - The stock has received a Zacks Rank 2 (Buy), suggesting expectations for above-average returns in the coming months [4] Group 2: VGM Scores - HealthEquity has a Growth Score of B and a Momentum Score of B, indicating strong performance in these areas [3] - The stock has a Value Score of C, placing it in the middle 20% for this investment strategy, contributing to an overall aggregate VGM Score of B [3]

Core Viewpoint - Growth investors are focused on stocks with above-average financial growth, but identifying stocks that can fulfill their growth potential is challenging [1] Group 1: Company Overview - HealthEquity (HQY) is currently recommended as a growth stock due to its favorable Growth Score and top Zacks Rank [2] - The company has a historical EPS growth rate of 19.1%, with projected EPS growth of 15.8% this year, significantly higher than the industry average of 7.7% [5] Group 2: Financial Metrics - HealthEquity's year-over-year cash flow growth is 25.9%, outperforming the industry average of -1.5% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 19.3%, compared to the industry average of 8% [7] Group 3: Earnings Estimates - There has been a positive trend in earnings estimate revisions for HealthEquity, with the Zacks Consensus Estimate for the current year increasing by 6.5% over the past month [8] - HealthEquity has earned a Growth Score of B and carries a Zacks Rank 2 due to positive earnings estimate revisions, indicating it is a potential outperformer for growth investors [10]

Market Overview - U.S. stocks closed higher on Friday, with the Dow Jones index gaining over 400 points following the release of jobs data [1] Analyst Ratings and Insights - Benzinga's Analyst Ratings API provides high-quality stock ratings through partnerships with major sell-side banks, displaying overnight rating changes daily [2] - Analyst insights from Benzinga Pro subscribers have been shown to outperform the stock market as trading indicators [2] Top Analyst Picks - Benzinga offers access to the latest analyst ratings, allowing traders to sort by analyst accuracy [3] - The most accurate Wall Street analysts include Trevor Walsh and Alexander Paris [3] Recent Analyst Ratings - **CrowdStrike Holdings, Inc. (CRWD)**: JMP Securities maintained an Outperform rating with a price target of $500, indicating a 6% upside [5] - **HealthEquity, Inc. (HQY)**: Barrington Research maintained an Outperform rating and raised the price target from $112 to $125, indicating a 12% surge potential [5] - **Amazon.com, Inc. (AMZN)**: JP Morgan maintained an Overweight rating and increased the price target from $225 to $240, indicating a 12% upside [5] - **LGI Homes, Inc. (LGIH)**: Wedbush maintained a Neutral rating and cut the price target from $100 to $93, indicating a 90% upside [5] - **Broadcom Inc. (AVGO)**: An analyst reiterated a Buy rating and boosted the price target from $267 to $295, indicating a 20% upside [6] Company News - CrowdStrike's CEO expressed confidence in the company's financial practices amid a Department of Justice inquiry [5] - HealthEquity reported better-than-expected first-quarter adjusted EPS results and raised its FY26 guidance [5] - Amazon cut jobs in its books division, including roles at Goodreads and Kindle [5] - LGI Homes reported 416 home closings in May [5] - Broadcom reported second-quarter revenue of $15 billion, exceeding analyst estimates of $14.99 billion [6]