HealthEquity (HQY) stock has been on a roll lately, gaining 7.1% over the past four weeks and closing the last trading session at $76.24. But could there be even more upside in store? Wall Street analysts seem to think so, with their average price target suggesting a potential 36.6% increase from the current price.
This optimistic outlook is supported by a strong consensus among analysts regarding HQY’s future earnings. While the range of price targets is from $92 to $115, with a standard deviation of $6.14, the fact that analysts are largely aligned on the direction of the stock’s movement is a significant indicator.
It’s important to note that solely relying on analysts’ price targets for investment decisions isn’t always wise. Their ability to accurately predict stock prices has been questioned over the years. However, the combination of a strong consensus price target and positive revisions to earnings estimates provides a compelling case for HQY’s potential upside.
Recent research indicates that trends in earnings estimate revisions have a strong correlation with near-term stock price movements. This is encouraging for HQY, as the Zacks Consensus Estimate for the current year has been revised upward by 4.1% in the past month, with three analysts raising their estimates. Additionally, HQY currently holds a Zacks Rank #2 (Buy), placing it within the top 20% of over 4,000 stocks ranked based on earnings estimates.
This combination of positive indicators suggests a promising outlook for HQY. While the consensus price target may not guarantee the exact extent of the stock’s gains, it does point towards a favorable direction. Investors should carefully consider this information alongside other factors before making any investment decisions.
