What happened

Shares of HealthEquity (NASDAQ:HQY), a leading provider of managed healthcare accounts, fell as much as 12% on Monday. The stock was down about 11% as of 11:03 a.m. EDT.

So what

There wasn't a single press release, SEC filing, or analyst downgrade that could justify the double-digit decline. That makes it likely that HealthEquity's stock is simply being sold along with the rest of the market today due to the growing concerns of the spread of COVID-19 (which is more commonly known as the coronavirus) and the shock to the oil markets over the weekend.

Businessman looking stressed at computer with cups of coffee everywhere.

Image source: Getty Images.

HealthEquity is most likely dropping more than the market indices because it is a growth stock that trades at a premium valuation. During times of market volatility, stocks that trade at high valuations tend to fall more than the market as a whole.

Now what

HealthEquity is set to report its year-end results on Monday, March 16. Investors were given a sneak peak at the numbers in mid-February and, as usual, there was a lot to like. Revenue and adjusted EPS are both expected to come in above management's previously communicated guidance range, which suggests that the company continues to execute at a high level.

Meanwhile, HealthEquity's stock has been beaten up recently. Shares are down more than 36% from their February highs, even though the company hasn't issued any negative news during that time. If you believe in HealthEquity's long-term potential, this might be a great time to add a few shares to your portfolio.