19 August 2026
I’ve been putting a lot of names through the screener in these volatile markets. Healthcare’s where the strength is right now. Drill down into the industries though and one bit stands miles above the rest. Health Information Services. Green on every timeframe I track, day out to six months, getting stronger the further out you look.
One name out of that group properly grabbed me. Hinge Health. Never covered it before, wasn’t even on my radar until this week. Here’s why it’s on the watchlist now.
What they actually do
Digital physio, basically. Back pain, knee pain, joint stuff, treated through an app rather than trekking off to see someone in person. Camera on your phone watches you doing the exercises, AI corrects your form as you go. There’s a wearable too, called Enso, little electrical stim device for pain relief, no pills involved. And you can get an actual physical therapist on text, phone, or video whenever you need one.
The bit I like most is who they’re actually selling to. Not you or me. Big employers, the self-insured ones, and health plans, and it goes to staff as a benefit. Makes total sense from the employer side. Back and joint problems cost a fortune in surgery and time off work. Give staff a free alternative and the business saves money. Over half the Fortune 100 are already on board with it.
Numbers back that up. Win rates against competitors apparently sitting at all time highs. Retention above 98%. Existing clients spend more with them over time too, not less, which tells you the thing’s properly sticky once a company signs up, not just a one-off sale.
Why the financials work for me
Last quarter was strong, and not in a hand-wavy way either. Revenue up 53% year on year. Operating margin went from 19% to 29% in a year. Free cash flow tripled to $100 million in the quarter, 47% margin on that. That’s not a business burning cash to grow, it’s one getting more efficient the bigger it gets. Exactly the combination I want to see before I put a name on a watchlist.
No real debt either. Net cash, comfortably. Given the debt story that’s been rattling markets this week, that matters. They can fund their own growth and do small bolt on deals without going near the bond market, unlike a fair few of their AI-adjacent peers right now.
Where the growth comes from next
Core physio business is still growing hard on its own. Two extra bits being layered underneath it though. A migraine care programme launched recently, already hundreds of clients signed up covering millions of lives. And they’ve just bought a smaller company to push into gut health and digestive issues, a market that’s massive and badly served right now. Neither one moves the needle hugely this year, management’s been upfront the real impact lands 2027 into 2028. But that’s how these things tend to go. Seeds now, harvest later.
Guidance’s been raised twice already this year off the back of all this. Revenue growing, margins expanding, cash building up. Rare combination at this size, and it’s why I’ve bothered digging this deep into a name I’d never even heard of a week ago.
My price target
Working off where I think earnings go over the next few years and applying an average multiple, I’ve landed on $128. Stock’s sitting around $88 today. Decent chunk of upside if it plays out. My own working though, not a promise, multiples can compress just as fast as they expand.
Why it’s actually on the watchlist, not just a name I like
Liking a company isn’t the same as trading it. Here’s the technical side of why it’s earned a spot.
Big gap up on earnings day, 4th of August. Pulled back and settled for a couple of weeks after. That pullback tested the rising averages and held, proper healthy sign, not a break, just a breather. RSI cooled off from overbought back into a sensible zone. Sitting right on the average now. Earnings already done and dusted too, so there’s no nasty surprise sat between here and getting in.
What I actually need to see before this turns into a real trade rather than just a name on a list:
- Strong candle back above the averages, real volume behind it, not just drifting up quietly
- RSI staying sensible through that move, not straight back into overbought
- The pullback low holding — if that goes, the whole read’s wrong and I’m out
- Volume drying up on dips, picking up on the green days, same as it’s been doing
- Healthcare and this industry keeping their strength over the next few days, not just today
- The wider tech market calming down rather than getting worse
- Nothing landing right on top of an entry — there’s a small acquisition due to close in a couple of weeks worth watching for
- Stop and size sorted before I go near it. Never after.
That’s the difference between a name I like and a name I’d actually trade. Right now Hinge ticks the fundamental boxes. The technical side just needs to catch up.
25th August 2026
HNGE broke $90 today. That’s the level I’ve been watching since 19 Aug. Three weeks basing $86–$90. Heavy volume through the top. Pullback held. Confirmed. In at $90.93. Stop $89.50. Near target $93.99. Long term case: 53% revenue growth, margins expanding, net cash. $128 fundamental target. Sized to plan. Stop’s non-negotiable
