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Hims & Hers Stock Surges 90.4% in 3 Months: What's Fueling the Rally?
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Key Takeaways
HIMS surged 90.4% in three months, outpacing peers and driven by gains in online revenue and subscribers.
Expansion into Canada and the ZAVA acquisition mark major international growth milestones for HIMS.
HIMS projects up to 74% Q2 revenue growth and 63% full-year growth, fueled by demand for GLP-1 therapies.
Hims & Hers Health, Inc.’s (HIMS - Free Report) investors have been experiencing some short-term gains from the stock lately despite its bumpy ride over recent months. The San Francisco, CA-based health and wellness platform’s stock gained 90.4% compared with the industry’s 13.9% rise in the same time frame. It has also outperformed the sector and S&P 500’s growth of 1.5% and 18.6%, respectively.
A major development of HIMS this month has included the announcement of its planned expansion to Canada. This follows the recent closing of the company's acquisition of ZAVA, a digital health platform in Europe.
Hims & Hers had recorded a robust improvement in both the top and bottom lines and strength in its Online revenue channel in its first-quarter 2025. The increase in subscribers and monthly online revenue per average subscriber during the quarter was also seen. However, HIMS’ lower Wholesale revenues in the quarter were disappointing. The gross margin contracted due to rising product costs, which do not bode well for the stock.
Over the past three months, the stock’s performance has remained strong, outperforming its peers like Teladoc Health, Inc. (TDOC - Free Report) and American Well Corporation (AMWL - Free Report) , popularly known as Amwell. Teladoc Health’s and Amwell’s shares have gained 15.4% and 18.5%, respectively, in the same time frame.
Despite several challenges within the health and wellness market, including workforce-related complications and health epidemics or pandemics, the estimates indicate that the company might be able to maintain its positive market momentum at present.
HIMS expects revenues for the second quarter of 2025 and the full year in the bands of $530 million to $550 million (reflecting an uptick of 68-74% 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 revenues for the second quarter and the full year is currently pegged at $551.8 million and $2.35 billion, respectively, while the same for earnings per share is currently pegged at 17 cents and 74 cents.
HIMS’ Strong Fundamentals Aid It
Hims & Hers is significantly expanding into weight loss treatment, recognizing it as a core growth specialty. It began offering compounded injectable semaglutide in May 2024 and later added branded semaglutide, capitalizing on high consumer demand for GLP-1 therapies. These offerings align with Hims & Hers’ personalized, subscription-based model, integrating telehealth consultations, pharmacy fulfillment and clinical management.
A substantial portion of Hims & Hers' revenue is derived from a flexible subscription model, where customers receive recurring deliveries of prescription and non-prescription products. These plans offer billing cadences ranging from 30 to 360 days, with options to cancel, snooze or reactivate as needed. This approach drives predictable revenue and customer retention while supporting cost efficiency through integrated digital platforms, provider networks and pharmacy operations. Subscription-based offerings span specialties including sexual health, dermatology, mental health and weight loss.
In May, Hims & Hers announced a $870 million convertible senior notes offering and appointed Mo Elshenawy as chief technology officer. Proceeds are expected to support global expansion, strategic acquisitions and deeper investment in artificial intelligence (AI), diagnostics and personalized treatments to scale access to high-quality care. Elshenawy’s appointment is expected to accelerate the company’s vision of building an AI-powered healthcare platform that delivers personalized, accessible care at scale.
Hims & Hers’ Focus on International Expansion
This month, HIMS announced its plans to bring its affordable, holistic weight loss program to Canada. The move seems to have been timed with the anticipated first-ever worldwide availability of generic semaglutide. Per management, with branded semaglutide often priced out of reach, the introduction of generics marks a pivotal moment for access to care. Hims & Hers plans to offer access to lower-cost treatment options through its digital platform, paired with 24/7 access to licensed providers and personalized, clinically backed care plans. The price for generic semaglutide is expected to be available at a significant discount to the branded versions, with the prices expected to lower over time.
Last month, HIMS announced its agreement to acquire ZAVA, marking a significant step toward its global expansion. The deal will likely expand the company’s footprint in the U.K. and will officially launch the company in Germany, France and Ireland, with additional markets anticipated soon.
Hims & Hers is also planning to introduce a new, personalized dimension of digital health in Europe. Through this, the company aims to provide individuals with access to care tailored to their specific needs and goals across dermatology, weight loss, sexual health and mental health. To ensure a localized experience, this expansion is also expected to include access to British, German and French healthcare providers in local languages. Hims & Hers expects to share more about the offerings and their rollout in the coming months.
Challenges Ahead for HIMS
Last month, Novo Nordisk terminated its collaboration with Hims & Hers, and direct access to Wegovy will no longer be available via NovoCare Pharmacy. Per Novo Nordisk, Hims & Hers failed to adhere to the law, which prohibits the mass sales of compounded drugs under the guise of "personalization" and disseminated deceptive marketing that put patient safety at risk. This raises apprehension about the company’s future performance.
In the first quarter of 2025, Hims & Hers’ gross margin contracted 886 basis points due to a surge in the cost of revenues. This poses a 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 4.4X is lower than the industry’s average of 5.7X but is higher than its five-year median of 2.3X.
Image Source: Zacks Investment Research
Teladoc Health and Amwell’s forward 12-month P/S currently stand at 0.6X and 0.5X, respectively, in the same time frame.
HIMS’ Estimate Movement
Estimates for Hims & Hers’ 2025 earnings have moved a penny north to 74 cents in the past 60 days.
Image Source: Zacks Investment Research
Our Final Take on Hims & Hers
There is no denying that Hims & Hers is poised favorably in terms of core business strength, earnings prowess, robust financial footing and global opportunities. The Zacks Rank #3 (Hold) company’s strong 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. The favorable Zacks Style Score with a Growth Score of A suggests continued uptrend potential for HIMS.
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Hims & Hers Stock Surges 90.4% in 3 Months: What's Fueling the Rally?
Key Takeaways
Hims & Hers Health, Inc.’s (HIMS - Free Report) investors have been experiencing some short-term gains from the stock lately despite its bumpy ride over recent months. The San Francisco, CA-based health and wellness platform’s stock gained 90.4% compared with the industry’s 13.9% rise in the same time frame. It has also outperformed the sector and S&P 500’s growth of 1.5% and 18.6%, respectively.
A major development of HIMS this month has included the announcement of its planned expansion to Canada. This follows the recent closing of the company's acquisition of ZAVA, a digital health platform in Europe.
Hims & Hers had recorded a robust improvement in both the top and bottom lines and strength in its Online revenue channel in its first-quarter 2025. The increase in subscribers and monthly online revenue per average subscriber during the quarter was also seen. However, HIMS’ lower Wholesale revenues in the quarter were disappointing. The gross margin contracted due to rising product costs, which do not bode well for the stock.
Hims & Hers is scheduled to release second-quarter 2025 results on Aug. 4, 2025, after the closing bell.
HIMS Three Months Price Comparison
Image Source: Zacks Investment Research
Over the past three months, the stock’s performance has remained strong, outperforming its peers like Teladoc Health, Inc. (TDOC - Free Report) and American Well Corporation (AMWL - Free Report) , popularly known as Amwell. Teladoc Health’s and Amwell’s shares have gained 15.4% and 18.5%, respectively, in the same time frame.
Despite several challenges within the health and wellness market, including workforce-related complications and health epidemics or pandemics, the estimates indicate that the company might be able to maintain its positive market momentum at present.
HIMS expects revenues for the second quarter of 2025 and the full year in the bands of $530 million to $550 million (reflecting an uptick of 68-74% 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 revenues for the second quarter and the full year is currently pegged at $551.8 million and $2.35 billion, respectively, while the same for earnings per share is currently pegged at 17 cents and 74 cents.
HIMS’ Strong Fundamentals Aid It
Hims & Hers is significantly expanding into weight loss treatment, recognizing it as a core growth specialty. It began offering compounded injectable semaglutide in May 2024 and later added branded semaglutide, capitalizing on high consumer demand for GLP-1 therapies. These offerings align with Hims & Hers’ personalized, subscription-based model, integrating telehealth consultations, pharmacy fulfillment and clinical management.
A substantial portion of Hims & Hers' revenue is derived from a flexible subscription model, where customers receive recurring deliveries of prescription and non-prescription products. These plans offer billing cadences ranging from 30 to 360 days, with options to cancel, snooze or reactivate as needed. This approach drives predictable revenue and customer retention while supporting cost efficiency through integrated digital platforms, provider networks and pharmacy operations. Subscription-based offerings span specialties including sexual health, dermatology, mental health and weight loss.
In May, Hims & Hers announced a $870 million convertible senior notes offering and appointed Mo Elshenawy as chief technology officer. Proceeds are expected to support global expansion, strategic acquisitions and deeper investment in artificial intelligence (AI), diagnostics and personalized treatments to scale access to high-quality care. Elshenawy’s appointment is expected to accelerate the company’s vision of building an AI-powered healthcare platform that delivers personalized, accessible care at scale.
Hims & Hers’ Focus on International Expansion
This month, HIMS announced its plans to bring its affordable, holistic weight loss program to Canada. The move seems to have been timed with the anticipated first-ever worldwide availability of generic semaglutide. Per management, with branded semaglutide often priced out of reach, the introduction of generics marks a pivotal moment for access to care. Hims & Hers plans to offer access to lower-cost treatment options through its digital platform, paired with 24/7 access to licensed providers and personalized, clinically backed care plans. The price for generic semaglutide is expected to be available at a significant discount to the branded versions, with the prices expected to lower over time.
Last month, HIMS announced its agreement to acquire ZAVA, marking a significant step toward its global expansion. The deal will likely expand the company’s footprint in the U.K. and will officially launch the company in Germany, France and Ireland, with additional markets anticipated soon.
Hims & Hers is also planning to introduce a new, personalized dimension of digital health in Europe. Through this, the company aims to provide individuals with access to care tailored to their specific needs and goals across dermatology, weight loss, sexual health and mental health. To ensure a localized experience, this expansion is also expected to include access to British, German and French healthcare providers in local languages. Hims & Hers expects to share more about the offerings and their rollout in the coming months.
Challenges Ahead for HIMS
Last month, Novo Nordisk terminated its collaboration with Hims & Hers, and direct access to Wegovy will no longer be available via NovoCare Pharmacy. Per Novo Nordisk, Hims & Hers failed to adhere to the law, which prohibits the mass sales of compounded drugs under the guise of "personalization" and disseminated deceptive marketing that put patient safety at risk. This raises apprehension about the company’s future performance.
In the first quarter of 2025, Hims & Hers’ gross margin contracted 886 basis points due to a surge in the cost of revenues. This poses a 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 4.4X is lower than the industry’s average of 5.7X but is higher than its five-year median of 2.3X.
Image Source: Zacks Investment Research
Teladoc Health and Amwell’s forward 12-month P/S currently stand at 0.6X and 0.5X, respectively, in the same time frame.
HIMS’ Estimate Movement
Estimates for Hims & Hers’ 2025 earnings have moved a penny north to 74 cents in the past 60 days.
Image Source: Zacks Investment Research
Our Final Take on Hims & Hers
There is no denying that Hims & Hers is poised favorably in terms of core business strength, earnings prowess, robust financial footing and global opportunities. The Zacks Rank #3 (Hold) company’s strong 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. The favorable Zacks Style Score with a Growth Score of A suggests continued uptrend potential for HIMS.