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Why Hims & Hers Health, Inc. (HIMS) Outpaced the Stock Market Today

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Hims & Hers Health, Inc. (HIMS - Free Report) closed the most recent trading day at $32.34, moving +2.05% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.16% for the day. Meanwhile, the Dow experienced a rise of 0.17%, and the technology-dominated Nasdaq saw an increase of 0.26%.

The stock of company has fallen by 14.84% in the past month, lagging the Medical sector's gain of 2.84% and the S&P 500's gain of 1.89%.

The investment community will be closely monitoring the performance of Hims & Hers Health, Inc. in its forthcoming earnings report. The company is forecasted to report an EPS of $0.04, showcasing a 63.64% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $620.41 million, up 28.94% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.48 per share and a revenue of $2.35 billion, indicating changes of +77.78% and 0%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for Hims & Hers Health, Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.52% decrease. Currently, Hims & Hers Health, Inc. is carrying a Zacks Rank of #3 (Hold).

From a valuation perspective, Hims & Hers Health, Inc. is currently exchanging hands at a Forward P/E ratio of 56.23. This represents a premium compared to its industry average Forward P/E of 30.22.

One should further note that HIMS currently holds a PEG ratio of 5.37. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Medical Info Systems stocks are, on average, holding a PEG ratio of 2.31 based on yesterday's closing prices.

The Medical Info Systems industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 104, placing it within the top 43% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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