Hims & Hers Health (HIMS) has become a hot stock in recent months, with its shares rising nearly 20-fold from 2022 lows and reaching a staggering 490% growth over the past year. The company’s robust growth is driven by a subscriber base of 2 million people, offering consultations with healthcare professionals through its smartphone app and website.
Despite the hype, Hims & Hers still has significant upside potential, particularly in its compounded GLP-1 agonist drugs for weight loss. However, it’s essential to remember that these sales represent only a minor portion of the company’s broader business, which is growing rapidly. Excluding GLP-1 agonists, Hims & Hers’ revenue growth accelerated by 40% year-over-year in Q3 2024.
The company’s strong growth and profitability make it an attractive investment opportunity. However, it’s crucial to approach this stock with caution, considering the potential risks and competition from established players like Amazon.
To invest wisely in Hims & Hers, consider dollar-cost averaging and monitoring its future growth outside of compounded GLP-1 agonists. The company has demonstrated strong marketing execution and is building a competitive advantage through its branding and proprietary data collection.
Shares of Hims & Hers currently trade at around 5 times next year’s revenue estimates, making it a reasonably valued stock. With this in mind, investors can exercise restraint and resist the fear of missing out (FOMO) on a stock that has experienced an epic run.
Key Takeaway: Hims & Hers is a high-growth healthcare stock with significant upside potential, but investors should approach it with caution and consider dollar-cost averaging to minimize risk.
Source: https://www.fool.com/investing/2025/02/18/hims-hers-health-stock-a-millionaire-maker-in-the