From Nasdaq: 2025-02-18 06:16:52

The stock price of Hims & Hers Health (NYSE: HIMS) surged 43% in a week following a controversial Super Bowl commercial on America’s obesity crisis. HIMS revenue has skyrocketed, with a 357% increase to $1.2 billion, driving the stock’s nine-fold surge. The company offers compounded semaglutide formulations, benefiting from high demand for weight-loss drugs.

Hims & Hers revenue has soared due to increased sales of GLP-1 drugs for weight loss. The company sells compounded versions of weight loss drugs like Wegovy and Zepbound, priced at $165, while branded drugs cost over $1,000. Total subscribers on the platform have quadrupled to over 2 million, with revenue per subscriber rising from $51 to $60.

Despite volatility, HIMS stock has delivered impressive returns, outperforming major benchmarks. The company improved its operating margin from -42.3% in 2021 to 3.5% currently. Analysts target an average price of $26, a 55% discount from the current $60 price. The stock’s momentum is driven by optimism around continued compounding opportunities.

Investors are advised to consider the Trefis High-Quality Portfolio for less volatile returns. HIMS stock’s recent performance has been stellar, with a 59% return in February 2025 and a total return of 498% since 2017. While the stock may appear overvalued, it has outperformed the S&P 500 significantly.

The future outlook for Hims & Hers remains uncertain due to ongoing compounding opportunities and potential market contraction. The company’s emphasis on customized treatments may sustain compounding operations beyond drug shortages. However, long-term investment perspective on HIMS stock is challenging amid uncertainties in the market. Consider valuable peer comparisons for better industry insights.



Read more at Nasdaq: HIMS Stock: What Comes After the Nine-Fold Jump?