We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Hims & Hers (HIMS) Gains 37.7% in Three Months: What's Next?
Read MoreHide Full Article
Hims & Hers Health, Inc.’s (HIMS - Free Report) investors are enjoying some short-term gains from the stock of late. Shares of the San Francisco, CA-based health and wellness platform have rallied 37.7% in the past three months, outperforming the industry’s 13.6% decline. In the same time frame, it rose above the sector and S&P 500’s 1.6% and 7.1% gains, respectively.
Two major developments from HIMS in recent months include the addition of GLP-1 injections to its comprehensive weight loss portfolio and the announcement of its first-quarter 2024 results (both in May). The recent uptick signals increasing investors’ sentiments surrounding the company’s announcements and upbeat 2024 revenue outlook, followed by a bullish consensus estimate.
HIMS Three Months Price Comparison
Image Source: Zacks Investment Research
Over the past three months, the stock’s performance has remained upbeat compared to its peers like Teladoc Health, Inc. (TDOC - Free Report) and Abbott Laboratories (ABT - Free Report) , both of whose shares have plunged 36.9% and 7.4%, respectively.
Despite several challenges within the health and wellness market, including workforce-related complications and health epidemics or pandemics, the favorable estimates indicate that the positive market momentum might be sustained.
HIMS expects revenues for the second quarter of 2024 and the full year in the bands of $292 million-$297 million and $1.20 billion-$1.23 billion, respectively. The Zacks Consensus Estimate for the time frames is currently pegged at $300.4 million and $1.26 billion, respectively. The estimates indicate 44.5% and 44.3% improvements from the year-over-year and comparable 2024 periods.
Hims & Hers has a unique mix of a clinically-focused electronic medical record system, digital prescriptions and cloud pharmacy fulfillment, each having multiple growth drivers promising robust growth potential.
During the first quarter of 2024, Hims & Hers has been focused on adding net new subscribers and expanding its offerings, and the progress is evident so far. On top of this, the stock seems well-positioned to navigate through the current macroeconomic climate.
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 investing in a disciplined approach to scale its platform. This is significantly driving the number of net subscribers. The company ended first-quarter 2024 with more than 1.7 million subscribers, up 41.4% from year over year.
Hims & Hers is making investments in the expansion of its current facilities, which are expected to continue for at least the next 12 months. Additionally, the company is currently working to enhance its offerings and expand the breadth of health and wellness products and services offered on its websites and mobile applications. This includes investments in personalized product offerings, including in its compounding capabilities. This also includes further investments in and development of mobile phone technology, including its mobile applications.
Further International Expansion on the Horizon
Hims & Hers’ strong brand and digital-first, cloud-based business model has driven rapid adoption in the United States. Additionally, the company’s model has been developed to be scalable and applicable across new markets and languages. It expanded into the UK in early 2021 and, in June 2021, completed its acquisition of U.K.-based Honest Health Limited, which is now Hims & Hers UK Limited (“HHL”), a company that offers health and wellness products and services. The acquisition of HHL has allowed HIMS to expand its operations in the UK further. Management expects its model will afford the company further international expansion opportunities in Europe and beyond.
Stock Trading Cheaper Than Peers
HIMS’ forward 12-month P/S of 3X is higher than both the industry average of 1.3X and its five-year median of 2.5X.
Price-to-Sales Forward Twelve Months (F12M)
Image Source: Zacks Investment Research
Estimate Movement
Estimates for Hims & Hers’ 2024 earnings have moved 11.1% north to 20 cents in the past 30 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 #1 (Strong Buy) stock’s strong core growth prospects present a good reason for the existing investors to retain shares for potential future gains.
For those exploring to make new additions to their portfolios, the valuation indicates expectations of superior performance compared with its industry and sector peers. However, as it is still valued lower than the broader market, it suggests potential room for growth if it can align more closely with overall market performance. You can see the complete list of today’s Zacks #1 Rank stocks here.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Hims & Hers (HIMS) Gains 37.7% in Three Months: What's Next?
Hims & Hers Health, Inc.’s (HIMS - Free Report) investors are enjoying some short-term gains from the stock of late. Shares of the San Francisco, CA-based health and wellness platform have rallied 37.7% in the past three months, outperforming the industry’s 13.6% decline. In the same time frame, it rose above the sector and S&P 500’s 1.6% and 7.1% gains, respectively.
Two major developments from HIMS in recent months include the addition of GLP-1 injections to its comprehensive weight loss portfolio and the announcement of its first-quarter 2024 results (both in May). The recent uptick signals increasing investors’ sentiments surrounding the company’s announcements and upbeat 2024 revenue outlook, followed by a bullish consensus estimate.
HIMS Three Months Price Comparison
Image Source: Zacks Investment Research
Over the past three months, the stock’s performance has remained upbeat compared to its peers like Teladoc Health, Inc. (TDOC - Free Report) and Abbott Laboratories (ABT - Free Report) , both of whose shares have plunged 36.9% and 7.4%, respectively.
Despite several challenges within the health and wellness market, including workforce-related complications and health epidemics or pandemics, the favorable estimates indicate that the positive market momentum might be sustained.
HIMS expects revenues for the second quarter of 2024 and the full year in the bands of $292 million-$297 million and $1.20 billion-$1.23 billion, respectively. The Zacks Consensus Estimate for the time frames is currently pegged at $300.4 million and $1.26 billion, respectively. The estimates indicate 44.5% and 44.3% improvements from the year-over-year and comparable 2024 periods.
Hims & Hers has a unique mix of a clinically-focused electronic medical record system, digital prescriptions and cloud pharmacy fulfillment, each having multiple growth drivers promising robust growth potential.
During the first quarter of 2024, Hims & Hers has been focused on adding net new subscribers and expanding its offerings, and the progress is evident so far. On top of this, the stock seems well-positioned to navigate through the current macroeconomic climate.
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 investing in a disciplined approach to scale its platform. This is significantly driving the number of net subscribers. The company ended first-quarter 2024 with more than 1.7 million subscribers, up 41.4% from year over year.
Hims & Hers is making investments in the expansion of its current facilities, which are expected to continue for at least the next 12 months. Additionally, the company is currently working to enhance its offerings and expand the breadth of health and wellness products and services offered on its websites and mobile applications. This includes investments in personalized product offerings, including in its compounding capabilities. This also includes further investments in and development of mobile phone technology, including its mobile applications.
Further International Expansion on the Horizon
Hims & Hers’ strong brand and digital-first, cloud-based business model has driven rapid adoption in the United States. Additionally, the company’s model has been developed to be scalable and applicable across new markets and languages. It expanded into the UK in early 2021 and, in June 2021, completed its acquisition of U.K.-based Honest Health Limited, which is now Hims & Hers UK Limited (“HHL”), a company that offers health and wellness products and services. The acquisition of HHL has allowed HIMS to expand its operations in the UK further. Management expects its model will afford the company further international expansion opportunities in Europe and beyond.
Stock Trading Cheaper Than Peers
HIMS’ forward 12-month P/S of 3X is higher than both the industry average of 1.3X and its five-year median of 2.5X.
Price-to-Sales Forward Twelve Months (F12M)
Image Source: Zacks Investment Research
Estimate Movement
Estimates for Hims & Hers’ 2024 earnings have moved 11.1% north to 20 cents in the past 30 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 #1 (Strong Buy) stock’s strong core growth prospects present a good reason for the existing investors to retain shares for potential future gains.
For those exploring to make new additions to their portfolios, the valuation indicates expectations of superior performance compared with its industry and sector peers. However, as it is still valued lower than the broader market, it suggests potential room for growth if it can align more closely with overall market performance. You can see the complete list of today’s Zacks #1 Rank stocks here.