HealthEquity (HQY) Rose as its Results Surpassed Expectations

ClearBridge Investments, an investment management company, released its “ClearBridge Select Strategy” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. U.S. equities strongly rebounded in the second quarter. The S&P 500 Index returned 10.9%, and the benchmark Russell 3000 Index advanced 11.0%, as risk-on sentiment took hold following the pause in tariff implementation. The strategy outperformed the benchmark in the quarter, driven by the strength in portfolio construction across companies and sectors with distinct growth drivers. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, ClearBridge Select Strategy highlighted stocks such as HealthEquity, Inc. (NASDAQ:HQY). HealthEquity, Inc. (NASDAQ:HQY) provides financial technology solutions for healthcare and spending decisions. The one-month return of HealthEquity, Inc. (NASDAQ:HQY) was 3.64%, and its shares gained 19.01% of their value over the last 52 weeks. On September 17, 2025, HealthEquity, Inc. (NASDAQ:HQY) stock closed at $92.28 per share, with a market capitalization of $7.951 billion.

ClearBridge Select Strategy stated the following regarding HealthEquity, Inc. (NASDAQ:HQY) in its second quarter 2025 investor letter:

“Our health care exposure was a particular standout in a quarter that saw the sector overall struggle due to tariff fears and challenges in the Medicare Advantage market. HealthEquity, Inc. (NASDAQ:HQY), a provider of health savings accounts (HSA), saw its shares rise on better than expected quarterly revenue and raised full-year guidance driven by strong growth in HSAs and assets.”

13 Cheap AI Stocks to Buy According to Analysts

HealthEquity, Inc. (NASDAQ:HQY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held HealthEquity, Inc. (NASDAQ:HQY) at the end of the second quarter, which was 32 in the previous quarter. While we acknowledge the risk and potential of HealthEquity, Inc. (NASDAQ:HQY) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HealthEquity, Inc. (NASDAQ:HQY) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered HealthEquity, Inc. (NASDAQ:HQY) and shared Brown Advisory Small-Cap Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.