Jefferies Highlights HealthEquity, Inc. (HQY) as Defensive Play Amid Healthcare, Tech Exposure

HealthEquity, Inc. (NASDAQ:HQY) is among the 20 Best Investments in 2026.

Jefferies Highlights HealthEquity, Inc. (HQY) as Defensive Play Amid Healthcare, Tech Exposure

HealthEquity, Inc. (NASDAQ:HQY) is given eleventh position on our list of best investments.

TheFly reported on February 19 that Jefferies lowered its price target for HQY to $108 from $120 and maintained a Buy rating. The firm noted that pre-released Q4 results showed solid growth, with HSA accounts up 6.9% and assets increasing 13.6% year-over-year. The firm also highlighted the stock as a defensive choice for investors seeking healthcare or tech exposure without AI-related risks.

HealthEquity, Inc. (NASDAQ:HQY) reported its fiscal year that concluded on January 31, 2026, on February 17. The company highlighted the robust growth in HSAs and associated assets. Overall, there were 10.6 million HSAs, up 7% from the previous year, and 17.8 million accounts, up 4% from 17.0 million the year before, according to the research.

The company reported that HSA assets grew 14% to $36.5 billion, supported by a 26% increase in HSA investments, which reached $18.5 billion. Fourth-quarter new HSA sales alone jumped 17% compared with the same period last year, reflecting strong demand and effective acquisition efforts.

HQY reaffirmed its previously provided guidance for fiscal 2026 and 2027, expecting 2026 results to approach the top of earlier projections. Strong sales performance supports the company’s plan to issue updated full-year guidance for 2027 when it releases fiscal 2026 year-end results in March.

HealthEquity, Inc. (NASDAQ:HQY) provides health savings accounts (HSAs) and benefits administration solutions, helping individuals and employers manage healthcare expenses efficiently through digital tools and financial services.

While we acknowledge the potential of HQY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HQY and that has a 100x upside potential, check out our report about the cheapest AI stock.

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