From Nasdaq: 2025-06-19 12:09:00

Hims & Hers Health, Inc.’s stock (HIMS) has seen short-term gains, up 85.1% compared to the industry’s 16.8% rise. Recent developments include an agreement to acquire ZAVA and offering Wegovy at $549 per month. However, lower Wholesale revenues in Q1 2025 led to a contraction in gross margin, posing a challenge for the stock.

Despite challenges, HIMS outperformed peers like Teladoc Health (TDOC) and American Well Corporation (AMWL) over 3 months. Estimates show positive market momentum with revenue expectations for Q2 2025 and full year at $530-550 million and $2.3-2.4 billion, respectively. Estimates for earnings per share are at 17 cents and 73 cents.

Hims & Hers focuses on global expansion with the acquisition of ZAVA, aiming to introduce personalized digital health in Europe. The company’s strong fundamentals and initiatives like offering Wegovy at an affordable price show promise for growth. Challenges lie ahead with a contraction in gross margin in Q1 2025, but the stock remains a strong investment pick with a Zacks Rank #2 (Buy).

Estimates for HIMS’ 2025 earnings are up 17.7% to 73 cents in the past 60 days. With a forward 12-month P/S of 5.3X and strong growth prospects, Hims & Hers is positioned favorably for potential growth. The stock valuation shows superior performance expectations compared to industry peers, making it an attractive investment opportunity.



Read more at Nasdaq: Hims & Hers Stock Jumps 85.1% in 3 Months: Is It a Buy Now?