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Here's Why You Should Add Hims & Hers Stock to Your Portfolio Now
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Hims & Hers Health (HIMS - Free Report) is well-positioned for growth as it addresses a vast unmet healthcare market, leveraging a total addressable market of $360M across specialties like mental health, weight loss and dermatology. Its personalized product offerings drive subscriber growth, with more than 2 million subscribers contributing to rising recurring revenues. Targeting $100 million from new categories by 2025, the company invests in GLP-1 weight-loss solutions, advanced tech and compounding pharmacies to scale. However, new launches are likely to put temporary pressure on margins.
This Zacks Rank #2 (Buy) company’s shares have surged 167.4% year to date compared with the industry’s 19.1% growth. The S&P 500 Index has increased 0.8% in the same time frame.
HIMS, a consumer-centric health and wellness platform that redefines healthcare through personalized solutions, has a market capitalization of $14.5 billion. It projects a 36.5% growth rate over the next five years and anticipates maintaining a strong performance going forward.
Image Source: Zacks Investment Research
Hims & Hers’ earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters, missed once and met in the other, the average surprise being 19.59%.
Let’s delve deeper.
Personalized Product Offering: Hims & Hers stands out with its commitment to personalization, providing tailored solutions that meet individual health needs. The company has a vision to expand its current offering of hundreds of personalized treatments to potentially thousands. Over 70% of new subscribers in the first quarter of 2025 opted for personalized products. Innovations include a variety of dosage forms, such as chewables, topicals and compounded medications, catering to diverse customer preferences and clinical requirements. Share of subscribers opting for personalized products has increased from nearly 17% in 2022 to more than 58% in the first quarter of 2025.
The platform’s proprietary MedMatch AI tool helps customize treatment plans by considering factors such as side effects and efficacy. Recent launches, including GLP-1-based weight-loss treatments with personalized titration schedules, showcase the company’s ability to scale its personalized offerings while maintaining high retention rates. This tailored approach strengthens customer loyalty and drives better health outcomes, positioning Hims & Hers as a leader in modern healthcare.
Rising Recurring Revenue: Hims & Hers has seen remarkable growth in its recurring revenues, driven by subscriber expansion and widespread adoption of personalized solutions. By the first quarter of 2025, the subscriber base reached 2.4 million, reflecting a 38% year-over-year increase. Recurring revenue streams are underpinned by subscription models, which enhance predictability and operational efficiency. Monthly online average revenue per subscriber increased 50% year over year to $84 in the first quarter.
The integration of tailored treatments, such as personalized weight-loss programs, is driving higher customer retention and cross-selling opportunities. Non-GLP-1 offerings alone achieved 30% growth in sales during the first quarter, demonstrating the breadth of appeal across categories. This approach not only increases market share but also reinforces the long-term sustainability of the company’s revenue model.
Newer Categories to Achieve Scale: Hims & Hers aims to generate at least $100 million in revenues from newer categories by 2025, with weight loss serving as a key growth driver. The introduction of holistic GLP-1 programs has significantly scaled the company’s presence in this space. Plans to launch liraglutide, the first generic GLP-1 medication, in 2025 further underline this ambition, with validated supply chains and manufacturing in progress. In September, HIMS announced access to the most common compounded GLP-1 subscriptions for $99 per month for eligible U.S. military personnel, veterans, teachers, nurses and first responders.
Investments in compounding pharmacy capabilities enhance scalability while supporting adjacent categories like mental health and dermatology. By continuously innovating and expanding into new segments, Hims & Hers ensures a diversified revenue base, positioning itself for sustained growth.
Strong Q1 Results: Hims & Hers exited the first quarter of 2025 with better-than-expected results. The robust improvement in the top and bottom lines and strength in its Online revenue channel were promising. The increase in subscribers and monthly online revenue per average subscriber during the quarter was encouraging. The expansion of the operating margin during the quarter bodes well.
In the first quarter, Online Revenues of $576.4 million reflected a surge of 115.3% year over year on a reported basis. The 38.4% rise in subscribers was primarily driven by increased traffic to Hims & Hers’ platform (through websites and mobile applications), resulting from marketing activities and improved onsite and customer onboarding experiences. The Net Orders and average order value, or AOV, have become less relevant for Hims & Hers’ business. Hence, beginning with the three months ended March 31, 2025, the company will no longer report them as key business metrics. The company projects revenues for the second quarter of 2025 in the range of $530-$550 million, implying an uptick of 68-74% year over year.
Hims & Hers’ gross profit increased 87.9% year over year to $430.7 million during the first quarter. Operating profit totaled $57.9 million, reflecting a 484.6% surge from the year-ago quarter’s level.
Downsides
New Launches to Keep Margins Under Pressure: While Hims & Hers aggressively expands its product portfolio, new launches come with upfront costs and operational pressures. Initiatives such as the rollout of GLP-1 treatments and advancements in mental health solutions require substantial investments in R&D, marketing and infrastructure. Gross margin contracted 886 basis points to 73.5% during the first quarter.
Such expansions often lead to temporary margin compression as the company builds capacity to meet anticipated demand. For example, the introduction of compounded medications necessitates stringent compliance measures, adding to operating costs. Despite these challenges, the long-term benefits of these investments, including higher customer retention and market share, are expected to outweigh short-term pressures.
Rising Competition: Hims & Hers operates in a competitive digital health landscape, facing rivals like Teladoc, Ro and Amazon Pharmacy. These competitors leverage similar direct-to-consumer models, emphasizing ease of access and affordability. However, Hims & Hers differentiates itself with a personalized, vertically integrated approach that enhances user experience and operational efficiency.
By focusing on underserved areas like women’s health and expanding into adjacent specialties, Hims & Hers mitigates competitive risks. Its proprietary technologies, such as MedMatch AI and seamless telehealth integrations, further establish its leadership in the sector.
Estimate Trend
Hims & Hers has witnessed a robust upside revision trend for 2025. In the past 30 days, the Zacks Consensus Estimate for 2025 earnings per share has improved 12.5% to 74 cents.
The consensus mark for the company’s full-year revenues is pegged at $2.34 billion, indicating a 58.4% improvement from the year-ago quarter’s reported number.
WGS’ earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 145.82%. WGS’ shares have declined 17.3% so far this year.
CVS Health, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 12.2% for 2025.
CVS’ earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 18.08%. CVS’ shares have risen 34.7% year to date.
Cencora, carrying a Zacks Rank of 2 at present, has an estimated earnings growth rate of 16.7% for 2025.
COR’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 6.00%. Its shares have gained 27.3% so far this year.
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Here's Why You Should Add Hims & Hers Stock to Your Portfolio Now
Hims & Hers Health (HIMS - Free Report) is well-positioned for growth as it addresses a vast unmet healthcare market, leveraging a total addressable market of $360M across specialties like mental health, weight loss and dermatology. Its personalized product offerings drive subscriber growth, with more than 2 million subscribers contributing to rising recurring revenues. Targeting $100 million from new categories by 2025, the company invests in GLP-1 weight-loss solutions, advanced tech and compounding pharmacies to scale. However, new launches are likely to put temporary pressure on margins.
This Zacks Rank #2 (Buy) company’s shares have surged 167.4% year to date compared with the industry’s 19.1% growth. The S&P 500 Index has increased 0.8% in the same time frame.
HIMS, a consumer-centric health and wellness platform that redefines healthcare through personalized solutions, has a market capitalization of $14.5 billion. It projects a 36.5% growth rate over the next five years and anticipates maintaining a strong performance going forward.
Image Source: Zacks Investment Research
Hims & Hers’ earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters, missed once and met in the other, the average surprise being 19.59%.
Let’s delve deeper.
Personalized Product Offering: Hims & Hers stands out with its commitment to personalization, providing tailored solutions that meet individual health needs. The company has a vision to expand its current offering of hundreds of personalized treatments to potentially thousands. Over 70% of new subscribers in the first quarter of 2025 opted for personalized products. Innovations include a variety of dosage forms, such as chewables, topicals and compounded medications, catering to diverse customer preferences and clinical requirements. Share of subscribers opting for personalized products has increased from nearly 17% in 2022 to more than 58% in the first quarter of 2025.
The platform’s proprietary MedMatch AI tool helps customize treatment plans by considering factors such as side effects and efficacy. Recent launches, including GLP-1-based weight-loss treatments with personalized titration schedules, showcase the company’s ability to scale its personalized offerings while maintaining high retention rates. This tailored approach strengthens customer loyalty and drives better health outcomes, positioning Hims & Hers as a leader in modern healthcare.
Rising Recurring Revenue: Hims & Hers has seen remarkable growth in its recurring revenues, driven by subscriber expansion and widespread adoption of personalized solutions. By the first quarter of 2025, the subscriber base reached 2.4 million, reflecting a 38% year-over-year increase. Recurring revenue streams are underpinned by subscription models, which enhance predictability and operational efficiency. Monthly online average revenue per subscriber increased 50% year over year to $84 in the first quarter.
The integration of tailored treatments, such as personalized weight-loss programs, is driving higher customer retention and cross-selling opportunities. Non-GLP-1 offerings alone achieved 30% growth in sales during the first quarter, demonstrating the breadth of appeal across categories. This approach not only increases market share but also reinforces the long-term sustainability of the company’s revenue model.
Newer Categories to Achieve Scale: Hims & Hers aims to generate at least $100 million in revenues from newer categories by 2025, with weight loss serving as a key growth driver. The introduction of holistic GLP-1 programs has significantly scaled the company’s presence in this space. Plans to launch liraglutide, the first generic GLP-1 medication, in 2025 further underline this ambition, with validated supply chains and manufacturing in progress. In September, HIMS announced access to the most common compounded GLP-1 subscriptions for $99 per month for eligible U.S. military personnel, veterans, teachers, nurses and first responders.
Investments in compounding pharmacy capabilities enhance scalability while supporting adjacent categories like mental health and dermatology. By continuously innovating and expanding into new segments, Hims & Hers ensures a diversified revenue base, positioning itself for sustained growth.
Strong Q1 Results: Hims & Hers exited the first quarter of 2025 with better-than-expected results. The robust improvement in the top and bottom lines and strength in its Online revenue channel were promising. The increase in subscribers and monthly online revenue per average subscriber during the quarter was encouraging. The expansion of the operating margin during the quarter bodes well.
In the first quarter, Online Revenues of $576.4 million reflected a surge of 115.3% year over year on a reported basis. The 38.4% rise in subscribers was primarily driven by increased traffic to Hims & Hers’ platform (through websites and mobile applications), resulting from marketing activities and improved onsite and customer onboarding experiences. The Net Orders and average order value, or AOV, have become less relevant for Hims & Hers’ business. Hence, beginning with the three months ended March 31, 2025, the company will no longer report them as key business metrics. The company projects revenues for the second quarter of 2025 in the range of $530-$550 million, implying an uptick of 68-74% year over year.
Hims & Hers’ gross profit increased 87.9% year over year to $430.7 million during the first quarter. Operating profit totaled $57.9 million, reflecting a 484.6% surge from the year-ago quarter’s level.
Downsides
New Launches to Keep Margins Under Pressure: While Hims & Hers aggressively expands its product portfolio, new launches come with upfront costs and operational pressures. Initiatives such as the rollout of GLP-1 treatments and advancements in mental health solutions require substantial investments in R&D, marketing and infrastructure. Gross margin contracted 886 basis points to 73.5% during the first quarter.
Such expansions often lead to temporary margin compression as the company builds capacity to meet anticipated demand. For example, the introduction of compounded medications necessitates stringent compliance measures, adding to operating costs. Despite these challenges, the long-term benefits of these investments, including higher customer retention and market share, are expected to outweigh short-term pressures.
Rising Competition: Hims & Hers operates in a competitive digital health landscape, facing rivals like Teladoc, Ro and Amazon Pharmacy. These competitors leverage similar direct-to-consumer models, emphasizing ease of access and affordability. However, Hims & Hers differentiates itself with a personalized, vertically integrated approach that enhances user experience and operational efficiency.
By focusing on underserved areas like women’s health and expanding into adjacent specialties, Hims & Hers mitigates competitive risks. Its proprietary technologies, such as MedMatch AI and seamless telehealth integrations, further establish its leadership in the sector.
Estimate Trend
Hims & Hers has witnessed a robust upside revision trend for 2025. In the past 30 days, the Zacks Consensus Estimate for 2025 earnings per share has improved 12.5% to 74 cents.
The consensus mark for the company’s full-year revenues is pegged at $2.34 billion, indicating a 58.4% improvement from the year-ago quarter’s reported number.
Hims & Hers Health, Inc. Price
Hims & Hers Health, Inc. price | Hims & Hers Health, Inc. Quote
Other Stocks to Consider
Some other top-ranked stocks from the same medical industry are GENEDX HOLDINGS (WGS - Free Report) , CVS Health (CVS - Free Report) and Cencora (COR - Free Report) .
GENEDX, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated growth rate of 336% for 2025. You can see the complete list of today’s Zacks #1 Rank stocks here.
WGS’ earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 145.82%. WGS’ shares have declined 17.3% so far this year.
CVS Health, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 12.2% for 2025.
CVS’ earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 18.08%. CVS’ shares have risen 34.7% year to date.
Cencora, carrying a Zacks Rank of 2 at present, has an estimated earnings growth rate of 16.7% for 2025.
COR’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 6.00%. Its shares have gained 27.3% so far this year.