HIMS stock surges 14% due to shortage of weight loss drug, revenue and subscribers increase

From Nasdaq: 2024-11-25 00:32:17

Hims & Hers Health (NYSE: HIMS) stock price has surged 14% in a week due to the shortage of Eli Lilly’s weight loss drug. The company sells generic versions of weight loss drugs, benefiting from the shortage of GLP-1 drugs. HIMS stock has seen a 270% rise this year from $7 to $24 now.

Hims & Hers revenue has surged due to increased demand for weight loss drugs. The company has nearly quadrupled its subscribers from 0.5 million to over 2 million. HIMS stock has turned profitable, with operating income improving from -42.3% to 3.5%. The stock has risen 167% this year.

With uncertainty in the macroeconomic environment and competition from Amazon, HIMS stock may face challenges. The U.S. FDA will decide on Zepbound’s shortage by December 19. Hims & Hers plans to launch a generic version of Novo Nordisk’s drug in 2025. HIMS stock is trading at 4.4x revenues and is appropriately priced at $24.

HIMS stock has been volatile, with annual returns of -55% in 2021, -2% in 2022, and 39% in 2023. The company’s revenue has grown from $272 million in 2021 to $1.2 billion now. Despite the recent surge, HIMS stock is fully priced at $24. Valuable comparisons for companies can be found at Peer Comparisons.



Read more at Nasdaq: What’s Next For HIMS Stock?