HQY

HQY's strong HSA growth, AI-driven efficiencies and raised fiscal 2027 outlook support momentum, though cybersecurity risks remain a concern.

Investors interested in Medical Services stocks are likely familiar with Bausch + Lomb (BLCO) and HealthEquity (HQY). But which of these two stocks is more attractive to value investors?

HealthEquity (HQY) possesses solid growth attributes, which could help it handily outperform the market.

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HQY's strong HSA growth, AI-driven efficiencies and raised fiscal 2027 outlook support momentum, though cybersecurity risks remain a concern.

HealthEquity stands out as a beneficiary of durable HSA growth and higher-for-longer interest rates, with AI-driven cash-sorting risks seen as overblown. HQY's earnings are poised for material upside as fixed-rate contracts mature, with incremental net interest income tailwinds and strong account growth supporting double-digit EPS growth. Recent financials highlight robust EBITDA margin expansion, conservative leverage near 1x, and active share repurchases, reducing share count by 4% year-over-year.

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HQY's growth is driven by rising HSA assets and AI-led efficiencies, while cybersecurity risks remain a key concern.

HealthEquity's 15.7% three-month rally is backed by rising HSA scale, stronger margins and higher guidance, though key risks remain.

HealthEquity, Inc. (HQY) Q2 2027 Earnings Call Transcript