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Hims & Hers Stock Gains 8.6% in Three Months: How to Play It?
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Hims & Hers Health, Inc.’s (HIMS - Free Report) investors have been experiencing some short-term gains from the stock of late. Shares of the San Francisco, CA-based health and wellness platform have gained 8.6% in the past three months, outperforming the industry’s 0.4% loss. In the same time frame, the stock outperformed the sector and S&P 500’s 0.8% fall and 8.2% decline, respectively.
Two major developments of HIMS in recent months include the announcement of its promising fourth-quarter 2024 results and the acquisition of a U.S.-based peptide facility based in California (both in February). The buyout will likely enable it to strengthen the long-term durability of its domestic supply chain to meet the growing demand from Americans for personalized healthcare and treatment options.
The company reported robust improvement of the top and bottom lines in the fourth quarter of 2024. Strength in both Online and Wholesale revenue channels and increase in subscribers, monthly online revenue per average subscriber, average order value and net orders during the quarter were also recorded.
On the earnings call, management confirmed that HIMS had closed the acquisition of a provider of at-home whole-body lab testing. Per management, the additional capability will likely enable it to test for a wide range of critical biomarkers across heart, hormone, liver, thyroid and prostate, thus aiding in proactively identifying individual risks for disease.
HIMS Three Months Price Comparison
Image Source: Zacks Investment Research
Over the past three months, the stock’s performance has remained strong, outperforming that of its peers like Teladoc Health, Inc. (TDOC - Free Report) . However, HIMS slightly lagged behind its other peer, Abbott Laboratories (ABT - Free Report) . TDOC’s shares have plunged 16.9%, while ABT’s shares have gained 15.7% in the same time frame.
Despite several challenges within the health and wellness market, including workforce-related complications and health epidemics or pandemics, the favorable estimates indicate that the company might be able to maintain the positive market momentum at present.
HIMS expects revenues for the first quarter of 2025 and the full year in the bands of $520 million to $540 million (reflecting an uptick of 87-94% year over year) and $2.3 billion to $2.4 billion (representing growth of 56-63% from 2024 levels), respectively. The Zacks Consensus Estimate for the time frames is currently pegged at $535.9 million and $2.34 billion, respectively. Additionally, the Zacks Consensus Estimate for earnings per share in the first quarter of 2025 and the full year is currently pegged at 11 cents and 63 cents, respectively.
Hims & Hers has a unique mix of a clinically-focused electronic medical record system, digital prescriptions and cloud pharmacy fulfillment, each with multiple growth drivers promising robust growth potential.
HIMS’ Strong Fundamentals Weigh In
Hims & Hers is consistently witnessing strong market acceptance of its range of curated prescription and non-prescription health and wellness products and services. The company has been focusing on providing access to high-quality, personalized solutions at an affordable price, which is significantly driving the number of net subscribers.
Hims & Hers believes that the growing emphasis on personalized solutions, along with the maturation of newer customer groups introduced to favorable pricing models, is enhancing its retention rates. Additionally, the company is witnessing continued success in acquiring customers through more cost-effective channels as awareness of the Hims & Hers brands grows.
On the fourth-quarter earnings call last month, management confirmed that monthly online average revenue per subscriber increased 38% year over year. Per management, the scaling of GLP-1s and subscribers shifting to more premium personalized offerings were the primary growth drivers. Management also believes that the significant investments made in the fourth quarter in specific areas will likely drive future economies of scale.
Hims & Hers’ Product Availability
On the fourth-quarter earnings call, management shared that HIMS continues to primarily focus on its weight loss category to bring care to individuals who stand to benefit from its oral-based offerings, liraglutide later this year, and clinically necessary personalized dosages of semaglutide.
Hims & Hers’ continued focus on strengthening its comprehensive weight loss offerings, such as announcing the doorstep delivery of daily meal replacement bars and shakes in November 2024, also looks promising. The company aims to aid its customers in reaching and maintaining their health and wellness goals.
HIMS, in September, had announced access to the most common compounded GLP-1 subscriptions for $99 a month for eligible U.S. military, veterans, teachers, nurses and first responders. The company’s efforts to ease access to products are likely to aid it in expanding its customer base, which looks promising.
Challenges Ahead of HIMS
For the past few years, there has been a widespread shortage of semaglutide, a prescription-only drug. The shortage started widespread compounding of semaglutide in the United States, which became a popular way for patients to access weight loss drugs while branded products were in short supply. However, last month, the FDA announced that the shortage of semaglutide was over. This ended a nearly three-year shortage of prescription-only drugs. As compounding drugs that are essentially copies of a commercially available drug are federally restricted, this poses a challenge to Hims & Hers’ business, which has been benefiting from this shortage and compounding.
In the fourth quarter of 2024, Hims & Hers’ gross margin contracted 594 basis points on the back of a surge in the cost of revenues. This poses another challenge for the company if it is unable to control its costs in the future.
Hims & Hers’ Stock Valuation
HIMS’ forward 12-month P/S of 3.2X is lower than the industry’s average of 5X but is higher than its five-year median of 2.5X.
Image Source: Zacks Investment Research
HIMS’ Estimate Movement
Estimates for Hims & Hers’ 2025 earnings have moved 21.2% north to 63 cents in the past 60 days.
Image Source: Zacks Investment Research
Our Final Take
There is no denying that Hims & Hers sits favorably in terms of core business strength, earnings prowess, robust financial footing and global opportunities. The Zacks Rank #2 (Buy) stock’s strong core growth prospects present a good reason for existing investors to retain shares for potential future gains. New investors are also likely to be motivated to add the stock following the current surge in share prices. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For those exploring to make new additions to their portfolios, the valuation indicates superior performance expectations compared with its industry peers. It is still valued lower than the industry, which suggests potential room for growth if it can align more closely with overall market performance. However, if investors are already holding the stock, it would be prudent to hold on to it at present. The favorable Zacks Style Score with a Growth Score of A suggests continued uptrend potential for HIMS.
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Hims & Hers Stock Gains 8.6% in Three Months: How to Play It?
Hims & Hers Health, Inc.’s (HIMS - Free Report) investors have been experiencing some short-term gains from the stock of late. Shares of the San Francisco, CA-based health and wellness platform have gained 8.6% in the past three months, outperforming the industry’s 0.4% loss. In the same time frame, the stock outperformed the sector and S&P 500’s 0.8% fall and 8.2% decline, respectively.
Two major developments of HIMS in recent months include the announcement of its promising fourth-quarter 2024 results and the acquisition of a U.S.-based peptide facility based in California (both in February). The buyout will likely enable it to strengthen the long-term durability of its domestic supply chain to meet the growing demand from Americans for personalized healthcare and treatment options.
The company reported robust improvement of the top and bottom lines in the fourth quarter of 2024. Strength in both Online and Wholesale revenue channels and increase in subscribers, monthly online revenue per average subscriber, average order value and net orders during the quarter were also recorded.
On the earnings call, management confirmed that HIMS had closed the acquisition of a provider of at-home whole-body lab testing. Per management, the additional capability will likely enable it to test for a wide range of critical biomarkers across heart, hormone, liver, thyroid and prostate, thus aiding in proactively identifying individual risks for disease.
HIMS Three Months Price Comparison
Image Source: Zacks Investment Research
Over the past three months, the stock’s performance has remained strong, outperforming that of its peers like Teladoc Health, Inc. (TDOC - Free Report) . However, HIMS slightly lagged behind its other peer, Abbott Laboratories (ABT - Free Report) . TDOC’s shares have plunged 16.9%, while ABT’s shares have gained 15.7% in the same time frame.
Despite several challenges within the health and wellness market, including workforce-related complications and health epidemics or pandemics, the favorable estimates indicate that the company might be able to maintain the positive market momentum at present.
HIMS expects revenues for the first quarter of 2025 and the full year in the bands of $520 million to $540 million (reflecting an uptick of 87-94% year over year) and $2.3 billion to $2.4 billion (representing growth of 56-63% from 2024 levels), respectively. The Zacks Consensus Estimate for the time frames is currently pegged at $535.9 million and $2.34 billion, respectively. Additionally, the Zacks Consensus Estimate for earnings per share in the first quarter of 2025 and the full year is currently pegged at 11 cents and 63 cents, respectively.
Hims & Hers has a unique mix of a clinically-focused electronic medical record system, digital prescriptions and cloud pharmacy fulfillment, each with multiple growth drivers promising robust growth potential.
HIMS’ Strong Fundamentals Weigh In
Hims & Hers is consistently witnessing strong market acceptance of its range of curated prescription and non-prescription health and wellness products and services. The company has been focusing on providing access to high-quality, personalized solutions at an affordable price, which is significantly driving the number of net subscribers.
Hims & Hers believes that the growing emphasis on personalized solutions, along with the maturation of newer customer groups introduced to favorable pricing models, is enhancing its retention rates. Additionally, the company is witnessing continued success in acquiring customers through more cost-effective channels as awareness of the Hims & Hers brands grows.
On the fourth-quarter earnings call last month, management confirmed that monthly online average revenue per subscriber increased 38% year over year. Per management, the scaling of GLP-1s and subscribers shifting to more premium personalized offerings were the primary growth drivers. Management also believes that the significant investments made in the fourth quarter in specific areas will likely drive future economies of scale.
Hims & Hers’ Product Availability
On the fourth-quarter earnings call, management shared that HIMS continues to primarily focus on its weight loss category to bring care to individuals who stand to benefit from its oral-based offerings, liraglutide later this year, and clinically necessary personalized dosages of semaglutide.
Hims & Hers’ continued focus on strengthening its comprehensive weight loss offerings, such as announcing the doorstep delivery of daily meal replacement bars and shakes in November 2024, also looks promising. The company aims to aid its customers in reaching and maintaining their health and wellness goals.
HIMS, in September, had announced access to the most common compounded GLP-1 subscriptions for $99 a month for eligible U.S. military, veterans, teachers, nurses and first responders. The company’s efforts to ease access to products are likely to aid it in expanding its customer base, which looks promising.
Challenges Ahead of HIMS
For the past few years, there has been a widespread shortage of semaglutide, a prescription-only drug. The shortage started widespread compounding of semaglutide in the United States, which became a popular way for patients to access weight loss drugs while branded products were in short supply. However, last month, the FDA announced that the shortage of semaglutide was over. This ended a nearly three-year shortage of prescription-only drugs. As compounding drugs that are essentially copies of a commercially available drug are federally restricted, this poses a challenge to Hims & Hers’ business, which has been benefiting from this shortage and compounding.
In the fourth quarter of 2024, Hims & Hers’ gross margin contracted 594 basis points on the back of a surge in the cost of revenues. This poses another challenge for the company if it is unable to control its costs in the future.
Hims & Hers’ Stock Valuation
HIMS’ forward 12-month P/S of 3.2X is lower than the industry’s average of 5X but is higher than its five-year median of 2.5X.
Image Source: Zacks Investment Research
HIMS’ Estimate Movement
Estimates for Hims & Hers’ 2025 earnings have moved 21.2% north to 63 cents in the past 60 days.
Image Source: Zacks Investment Research
Our Final Take
There is no denying that Hims & Hers sits favorably in terms of core business strength, earnings prowess, robust financial footing and global opportunities. The Zacks Rank #2 (Buy) stock’s strong core growth prospects present a good reason for existing investors to retain shares for potential future gains. New investors are also likely to be motivated to add the stock following the current surge in share prices. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For those exploring to make new additions to their portfolios, the valuation indicates superior performance expectations compared with its industry peers. It is still valued lower than the industry, which suggests potential room for growth if it can align more closely with overall market performance. However, if investors are already holding the stock, it would be prudent to hold on to it at present. The favorable Zacks Style Score with a Growth Score of A suggests continued uptrend potential for HIMS.