Alert: Rating Downgrade (1/5/24)-HealthEquity Inc (NASDAQ: HQY).

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Stock Rating Downgrade

Reflecting eroding fundamentals and low Appreciation Potential, the Value Trend Rating for HealthEquity Inc (NASDAQ: HQY) weakened in the last week. HQY’s current Value Trend Rating is C and the prior Rating was B. Details supporting this lower rating are included in our next report.

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Recent Price Action

HealthEquity Inc (NASDAQ: HQY) stock declined slightly by -0.9% on 1/5/24. The stock closed at $67.95. NORMAL trading volume accompanied the decline. Relative to the market the stock has been exceptionally strong over the last nine months and has risen 2.9% during the last week.

Current PriceTarget Research Rating

With future capital returns forecasted to be above the cost of capital, HQY is expected to be a Value Builder.

HealthEquity has a current Value Trend Rating of C (High Neutral). This rating combines very contradictory signals from two proprietary PTR measures of a stock’s attractiveness. HealthEquity has a slightly negative Appreciation Score of 36 but a very high Power Rating of 90, producing the High Neutral Value Trend Rating.

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