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Bull of the Day: Hinge Health, Inc. (HNGE)

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Key Takeaways

  • HNGE is a virtual health stock focused on physical therapy, migraines, gastrointestinal care, and more.
  • Hinge Health's beat-and-raise Q3 report earns it a Zacks Rank #1 (Strong Buy).
  • Now might be time to buy the digital healthcare stock, especially if Wall Street keeps rotating out of AI.

Hinge Health, Inc. (HNGE - Free Report)  is a soaring virtual health stock focused on physical therapy, orthopedic care, migraine treatment, gastrointestinal care, and more.

HNGE, which went public in May 2025, is projected to double its revenue between 2025 and 2027, and its upward earnings revisions earn Hinge Health a Zacks Rank #1 (Strong Buy). The digital health firm is gaining steam as it expands its corporate clients (+28% YoY in Q3), which offer their employees access to Hinge’s growing number of AI- and wearable-boosted virtual health offerings.

It is also expanding its margins and free cash flow and diversifying far beyond Hinge’s original focus of musculoskeletal care—think arthritis, back pain, and more—through organic initiatives and acquisitions.

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Image Source: Zacks Investment Research

On top of Hinge’s standalone upside in the increasingly important virtual/telehealth industry, HNGE is benefiting from the broader rotation out of artificial intelligence stocks. The medical and healthcare sector is outpacing tech recently, and history shows that healthcare has often outperformed for years after previous boom-and-bust cycles faded.

Best Strong Buy Healthcare Stocks to Buy Amid the AI Selloff

Hinge Health was founded in 2014 on the belief that technology could automate much of physical therapy. The firm boasts that it leverages an “AI-powered care model, wearable devices, and access to expert clinicians” to deliver “personalized, evidence-based care that improves member outcomes and experiences, while reducing costs for clients.”

HNGE offers a digital program that helps people treat joint and muscle pain (like back, knee, or shoulder pain) from home using a smartphone app. It guides users through personalized exercise therapy with AI and motion-tracking technology, and connects them with coaches or physical therapists when needed.

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Image Source: Zacks Investment Research

It has also expanded beyond physical therapy into other areas, including digital programs for migraine care and gastrointestinal (GI) issues. Hinge completed its $105 million deal to buy virtual-first digestive healthcare leader Cylinder Health, Inc. in early September.

The purchase is helping it launch an integrated GI segment. Hinge pointed out the massive upside for GI care because GI conditions affect roughly one in four U.S. adults and “drive $135 billion in annual medical spend… and 69% of U.S. counties lack a gastroenterologist.”

All in, Hinge’s pitch to Wall Street, clients, and users is straightforward: it aims to be a go-to company for “virtual and in-person physical therapy, orthopedic care, and more—all accessible through a single app to help provide pain relief from head to toe.”

Buy the Top-Ranked Stock for Its Growth Outlook

Healthcare is getting more expensive, and the U.S. population is growing older. This backdrop is bullish for HNGE since musculoskeletal conditions, issues with bones, joints, muscles, tendons, and ligaments tradiationaly get worse with age. On top of that, digitalizing physical therapy helps cut costs.

HNGE primarily serves self-insured employers and health plans. It grew its clients by 28% YoY to 3,270 at the end of the third quarter. The firm said its client base climbed roughly 30% for its MSK Care Program, ~40% for its GI Care Program since its Cylinder Health acquisition, and roughly doubled for its Migraine Care Program.

It expanded its total quarterly revenue by 52% YoY and soared from a GAAP loss of $6.1 million in the year-ago period to +$50.3 million. Hinge also more than doubled its adjusted EPS to $0.71 a share. In the first nine months of 2026, Hinge more than doubled its free cash (+115% YoY) to $253.8 million.

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Image Source: Zacks Investment Research

HNGE raised its fiscal 2026 guidance after the strong report on November 2. Its upward EPS revisions earn it a Zacks Rank #1 (Strong Buy) and extend a strong run of positivity. Its adjusted earnings are projected to slip slightly (-4%) in 2026 as it invests in expansion, with the firm expected to boost its EPS by 27% next year to $3.18 a share vs. $2.51 expected this year. The chart above highlights Hinge’s long-term earnings growth outlook.

The digital healthcare firm is projected to expand its revenue by 50% in 2026 and another 28% next year to roughly double its sales from $587.9 million in 2025 to $1.13 billion in FY27.

Buy #1 (Strong Buy) Telehealth Stock HNGE Now?

HNGE shares have jumped ~14% in the past month vs. the S&P 500’s 6% drop and Tech’s 15% fall. This is part of a 160% YTD climb and a ~220% run since its May 2025 IPO. Hinge is trading right near its recent peaks, and its average Zacks price target implies 14% upside.

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Image Source: Zacks Investment Research

The stock has been hugging its 21-day moving average since breaking out meaningfully above its summer levels in early October. Hinge found support at its 21-day moving average late last week, and the stock could be ready to climb higher, especially if the rotation out of Tech and AI continues.

All-in investors should consider buying the Zacks Rank #1 (Strong Buy) digital musculoskeletal care stock since Hinge operates across unique, yet growth-focused segments of the wider healthcare world. 

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