Healthcare Choices Boost Healthequity

08/04/2015 7:00 am EST

Focus: STOCKS

Leo Fasciocco

Investment Columnist and Publisher, Ticker Tape Digest

Our latest featured breakout candidate provides an electronic platform for consumers to make healthcare decisions for health plans, insurance, and billing, explains Leo Fasciocco, editor of Ticker Tape Digest.

The company, with annual revenues of $97 million, offers a platform that provides access to tax-advantaged healthcare savings.

The platform also offers a comparison of treatment options and pricing and evaluates the ability to pay healthcare bills.

Analysts are forecasting Healthequity (HQY) will show a 44% jump in earnings for the fiscal year ending in January of 2016.

They look for 30 cents a share, up from 21 cents the year before. Then, going out to fiscal 2017 ending in January, they project a 43% gain in net to 43 cents a share from 30 cents anticipated in fiscal 2016. 

HQY came public last year in July at $20. It rose to a peak of $34.06 in June. The stock has moved to the top of its base and is in good position to breakout to a new all-time high.

The setup is perfect for a breakout. HQY's momentum indicator is solidly bullish. The accumulation-distribution line compliments the price action.

A breakout to a new all time high would be bullish and could bring in buying from the new high crowd. After a breakout above $34.25, we target a move to $42 per share.

The largest fund buyer recently was the 5-star rated Janus Triton D Fund, which purchased 885,947 shares as a new position. Also, Wasatch Small-Cap Growth was a recent purchaser of 612,868.

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