Is HealthEquity (HQY) a Smart Long-term Buy?

Wasatch Core Growth Fund recently released its Q3 2020 Investor Letter, a copy of which you can download here. The fund posted a return of 6.61% for the quarter, outperforming its benchmark, the Russell 2000 Index which returned 4.93% in the same quarter. You should check out Wasatch’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.

In the Q3 2020 Investor Letter, Wasatch highlighted a few stocks and HealthEquity Inc. (NASDAQ:HQY) is one of them. HealthEquity Inc. (NASDAQ:HQY) is a health care company. Year-to-date, HealthEquity Inc. (NASDAQ:HQY) stock lost 7.1% and on December 23rd it had a closing price of $68.80. Here is what Wasatch said:

“HealthEquity, Inc. (HQY), which also declined for the quarter, provides technology-enabled services platforms that allow consumers to make healthcare saving and spending decisions. The company’s platform gives consumers access to their taxadvantaged health-care-savings accounts, compare treatment options, pay medical bills, earn wellness incentives, and receive personalized benefit and clinical information. We believe the company’s acquisition of WageWorks caused some investors to take a wait-and-see attitude toward HealthEquity’s stock. But we think the acquisition should be a positive long-term growth driver for HealthEquity despite some associated seasonal risks.”

In Q2 2020, the number of bullish hedge fund positions on HealthEquity Inc. (NASDAQ:HQY) stock decreased by about 5% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t believe in HealthEquity’s growth potential. Our calculations showed that HealthEquity Inc. (NASDAQ:HQY) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

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