Latest news with #HimsAndHers
Yahoo
3 days ago
- Business
- Yahoo
This Monster Growth Stock Is Up 167% in the Past Year and Disrupting the Healthcare Space
Hims & Hers is gaining market share in the telehealth sector and has a long runway to disrupt the healthcare industry. It is acquiring a company in order to enter Europe. The stock is expensive, but it may still be a great investment over the long term. 10 stocks we like better than Hims & Hers Health › Telehealth has gone through a major boom-and-bust cycle. One promising stock emerging from the bust is Hims & Hers (NYSE: HIMS). Through nifty marketing and an insurance-circumventing subscription model that delivers medicine directly to your front door, the company is taking a lot of share in the telehealth market. The stock has traded up 449% since going public, and it is up a staggering 158% in the past year. Disruptive innovation helped bring shareholders of Hims & Hers stock major gains. But does that make the stock a buy today? People in the United States get frustrated dealing with health insurance -- as you may know from personal experience. Hims & Hers aims to slowly disrupt the market with an innovative approach that bypasses insurers. It helps customers easily get generic medications that help deal with sexual health, hair loss, mental health, and other common concerns, by having prescriptions and shipments sent straight to their doors through monthly subscriptions. This model has helped Hims & Hers dominate the telehealth prescription market and reach $1.78 billion in trailing-12-month revenue. It's now trying to further expand its offerings by adding the branded weight loss drug Wegovy to its marketplace through a partnership with Novo Nordisk (NYSE: NVO). Previously, Hims & Hers sold weight loss drugs under an exemption because of supply shortages for the products, but with those shortages now resolved, it has to work with patent holders such as Novo Nordisk. Along with weight loss, it's also aiming to get into testosterone and menopause-related prescriptions. Today, Hims & Hers has 2.4 million active customers. Management believes there are over 100 million people who could utilize one of its products, giving the company a huge runway to grow. A key factor will be the new partnership for marketing Wegovy, which is an expensive subscription at an introductory discount offer of $549 a month. Usage of such drugs is growing like a weed, and could be a new growth avenue for Hims & Hers to pursue. Another huge step for Hims & Hers is international expansion. While countries vary in their approaches to healthcare and insurance, most people want easy-to-use products, affordable prices, and convenient at-home shipping regardless of where they live. Management hopes to supercharge international growth with its proposed buyout of competitor Zava in Europe. Zava serves the western European market with 1.3 million active customers in the United Kingdom, France, Germany, and Ireland. The combined company can utilize Hims & Hers' marketing expertise, increasing scale, and partnerships to bring this sought-after model to Europe. Global disruption of the healthcare space will give Hims & Hers an even larger runway for growth, while also allowing it to invest in new innovations -- including at-home patient testing and its own compounding manufacturing facility. Hims & Hers has grand ambitions to disrupt healthcare with its direct-to-consumer model, and Zava will give it even more scale to keep accelerating growth. It will be exciting to see what the combined company can do over the next decade. You can feel the excitement with Hims & Hers and its explosive revenue growth. Sales grew 111% year over year last quarter, and are expected to hit at least $2.3 billion in 2025. (They were just $100 million in 2020.) The company has a goal of reaching $6.5 billion in sales by 2030, which would make it one of the fastest-growing companies in the world this decade. This fast growth has created some high expectations for Hims & Hers stock. It now has a price-to-earnings ratio (P/E) of 79, which is a high trailing earnings multiple even for a fast-growing company. However, revenue is growing so quickly and with such high margins that the company may grow into this high valuation by the end of the decade. As noted, management has a goal of $6.5 billion in revenue in 2030. With 20% bottom-line profit margins -- easily doable with 77% gross profit margin over the last 12 months -- that would equate to roughly $1.3 billion in annual earnings in 2030. Today, the market cap is $12.3 billion, which would mean a P/E of just around 9.5 by 2030 if the market cap did not change (which is an unlikely scenario, but demonstrates that there is potential for the valuation to drop). Even with some shareholder dilution that raises the number of shares outstanding, the stock would be trading at a P/E of around 10 to 12 at the current share price (which is also likely to change). If you believe this rapid growth will continue over the long term, Hims & Hers stock will grow into its valuation. If you have any doubts about this pace of growth, shares should be considered overvalued at the moment. Before you buy stock in Hims & Hers Health, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Hims & Hers Health wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,395!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $858,011!* Now, it's worth noting Stock Advisor's total average return is 997% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Hims & Hers Health. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy. This Monster Growth Stock Is Up 167% in the Past Year and Disrupting the Healthcare Space was originally published by The Motley Fool
Yahoo
3 days ago
- Business
- Yahoo
Is Hims & Hers Health a Smart Buy Right Now?
Hims & Hers is the newest darling disrupting the telemedicine space. While shares have jumped 157% over the last year, Wall Street analysts don't seem overly bullish on the stock. Despite impressive results in the business, Hims & Hers has a high short interest -- making a short-squeeze a possibility. 10 stocks we like better than Hims & Hers Health › When it comes to stocks that continue to beat the market, my guess is that your mind goes straight to companies leading the charge in artificial intelligence (AI). Sure, stocks such as Palantir Technologies or CoreWeave remain red-hot in a strong technology sector. But smart investors understand that there are myriad opportunities beyond the usual suspects in tech. One company that has emerged as a new favorite among investors is telemedicine business Hims & Hers Health (NYSE: HIMS). With shares up 157% over the last 12 months as of market close June 4, Hims & Hers Health looks like the next monster growth stock at the intersection of healthcare and technology. Let's assess the state of Hims & Hers' business and then take a look at what Wall Street thinks. Is buying shares of this telemedicine darling a good idea right now? Read on to find out. Hims & Hers is a telemedicine platform that offers patients access to a variety of medications, including for skin care, anxiety, sexual health, and even weight loss. At the core of the company's business model is a subscription platform. At the end of the first quarter, Hims & Hers boasted 2.4 million subscribers, which represented an increase of 38% year over year. This translated into revenue of $586 million for the quarter, up by a jaw-dropping 111% year over year. By keeping its business primarily online, Hims & Hers can benefit in a couple of ways. First, subscription revenue is recurring and therefore carries high gross margins. Second, by keeping its user base using its offerings, the company has the flexibility to spend less on marketing and invest in other areas, such as technology or research and development, in an effort to bolster customer acquisition strategies. Per management's vision, Hims & Hers is doubling down on investments in AI to get a better sense of its customer data. This could be a savvy move, as it may help the company unlock new expansion opportunities. While the ideas above paint a picture of a fast-growing, disruptive new solution in the healthcare space, Wall Street doesn't seem totally sold on Hims & Hers just yet. Over the last month, a number of equity research analysts, including Piper Sandler, Citigroup, Bank of America, and Morgan Stanley, have each maintained ratings of neutral, sell, underperform, or equal-weight. Another way of looking at this is that among some of the largest banks on Wall Street, none seem to have a compelling buy rating on Hims & Hers stock. In addition, the average price estimate among analysts for Hims & Hers stock is roughly $48, implying 12% downside from trading levels as of June 4. Given Wall Street's somewhat bearish sentiment, what could be fueling the stock's seemingly unstoppable rally? I think the company's high short interest could be the cause of the rise in its stock. Per the chart above, roughly 35% of Hims & Hers float is sold short. Investors who short a stock are betting its price will fall. Short interest of 10% or more is considered unusually high. Not only is Hims & Hers' short interest much higher than the usual benchmarks, it's also rising. A high short interest can fuel volatility and even a rise in a stock's price if investors who are shorting a stock need to buy shares in the company to return the borrowed shares and close out their position. This is known as short covering, and it often leads to pronounced increases in a stock for a fleeting period of time, adding to volatility. You might be more familiar with these dynamics as a short squeeze. Despite notable subscriber growth and expanding markets, Hims & Hers stock exhibits too much volatility for my liking, and with that, comes a high degree of uncertainty. At first glance, I can understand what makes Hims & Hers look like an appealing investment. Telemedicine represents a compelling opportunity at the intersection of healthcare and technology, and Hims & Hers has certainly proven that it can consistently acquire users and monetize them. Moreover, the prospects that AI presents in the healthcare space more broadly shouldn't be discounted -- further validating the vision management has for Hims & Hers' long-term growth. Nevertheless, I struggle to look past the meme stock type of behavior exhibited here. While some investors have certainly made money owning this stock, I am suspicious if their profits were sparked by the right reasons. Said differently, I view Hims & Hers as more of a swing trading stock (timing is everything) as opposed to a sound long-term opportunity at this time. For these reasons, I would pass on Hims & Hers at the moment. While I'm intrigued by the company's potential, I think shares have run up considerably and would not be surprised to see some contraction in the share price sooner than later. Before you buy stock in Hims & Hers Health, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Hims & Hers Health wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor's total average return is 792% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Bank of America is an advertising partner of Motley Fool Money. Citigroup is an advertising partner of Motley Fool Money. Adam Spatacco has positions in Palantir Technologies. The Motley Fool has positions in and recommends Bank of America, CrowdStrike, Hims & Hers Health, and Palantir Technologies. The Motley Fool has a disclosure policy. Is Hims & Hers Health a Smart Buy Right Now? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25-05-2025
- Business
- Yahoo
3 Intriguing Stocks Estimated At Up To 42.7% Below Intrinsic Value
As the United States market grapples with renewed trade tensions and fluctuating indices, investors are keenly observing the impact on economic growth and corporate profits. In such a volatile environment, identifying stocks trading below their intrinsic value can present unique opportunities for those looking to capitalize on potential mispricings. Name Current Price Fair Value (Est) Discount (Est) Berkshire Hills Bancorp (NYSE:BHLB) $25.09 $50.02 49.8% UMH Properties (NYSE:UMH) $16.38 $32.38 49.4% Super Group (SGHC) (NYSE:SGHC) $8.37 $16.54 49.4% Burke & Herbert Financial Services (NasdaqCM:BHRB) $55.59 $108.72 48.9% Advanced Flower Capital (NasdaqGM:AFCG) $4.83 $9.39 48.6% Hims & Hers Health (NYSE:HIMS) $53.52 $106.29 49.6% Finward Bancorp (NasdaqCM:FNWD) $30.00 $59.39 49.5% TXO Partners (NYSE:TXO) $15.30 $29.97 49% ZEEKR Intelligent Technology Holding (NYSE:ZK) $29.40 $57.19 48.6% Agora (NasdaqGS:API) $3.68 $7.25 49.2% Click here to see the full list of 169 stocks from our Undervalued US Stocks Based On Cash Flows screener. Underneath we present a selection of stocks filtered out by our screen. Overview: Simulations Plus, Inc. develops drug discovery and development software that leverages artificial intelligence and machine learning for modeling, simulation, and molecular property prediction globally, with a market cap of $637.52 million. Operations: The company's revenue is derived from two main segments: Services, which generated $32.54 million, and Software, contributing $46.02 million. Estimated Discount To Fair Value: 18.9% Simulations Plus is trading at US$32.49, approximately 18.9% below its estimated fair value of US$40.08, indicating potential undervaluation based on cash flows. Despite a decline in profit margins from 16.3% to 9.2%, the company expects revenue growth between US$90 million and US$93 million for 2025, supported by new product releases like DILIsym 11 and alignment with FDA initiatives to reduce animal testing, potentially driving future earnings growth significantly above market rates. Our expertly prepared growth report on Simulations Plus implies its future financial outlook may be stronger than recent results. Click here and access our complete balance sheet health report to understand the dynamics of Simulations Plus. Overview: Sportradar Group AG, along with its subsidiaries, offers sports data services to the sports betting and media industries across various global regions, with a market cap of approximately $6.97 billion. Operations: The company generates revenue primarily from its Data Processing segment, which amounts to €1.15 billion. Estimated Discount To Fair Value: 32.9% Sportradar Group, trading at $23.71, is valued 32.9% below its estimated fair value of $35.32, highlighting potential undervaluation based on cash flows. The company reported a significant turnaround with net income of €24.21 million in Q1 2025 compared to a loss the previous year and expects revenue growth of at least 15% for fiscal 2025. Despite low forecasted return on equity, earnings are projected to grow significantly faster than the US market average over the next three years. Insights from our recent growth report point to a promising forecast for Sportradar Group's business outlook. Unlock comprehensive insights into our analysis of Sportradar Group stock in this financial health report. Overview: Fiverr International Ltd. operates a global online marketplace and has a market cap of approximately $1.16 billion. Operations: The company's revenue is primarily generated from its Internet Software & Services segment, totaling $405.14 million. Estimated Discount To Fair Value: 42.7% Fiverr International, trading at US$33.15, is considered undervalued with a fair value estimate of US$57.86. The company raised its 2025 revenue guidance to between US$425 million and US$438 million, reflecting growth expectations of 9% to 12%. Earnings are expected to grow significantly at 38.4% annually over the next three years, outpacing the broader market's growth rate. A share repurchase program worth up to $100 million further underscores potential shareholder value enhancement. According our earnings growth report, there's an indication that Fiverr International might be ready to expand. Click to explore a detailed breakdown of our findings in Fiverr International's balance sheet health report. Take a closer look at our Undervalued US Stocks Based On Cash Flows list of 169 companies by clicking here. Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St's portfolio, where intuitive tools await to help optimize your investment outcomes. Simply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:SLP NasdaqGS:SRAD and NYSE:FVRR. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Globe and Mail
13-05-2025
- Business
- Globe and Mail
Hims & Hers Has a Superpower in Healthcare
Hims & Hers (NYSE: HIMS) CEO Andrew Dudum isn't interested in taking insurance onto his platform, and that shows how disruptive the company could be. This could be the next great growth stock if Dudum's plans to aggregate demand play out as hoped. *Stock prices used were end-of-day prices of May 6, 2025. The video was published on May 7, 2025. Should you invest $1,000 in Hims & Hers Health right now? Before you buy stock in Hims & Hers Health, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Hims & Hers Health wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $613,546!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $695,897!* Now, it's worth noting Stock Advisor 's total average return is893% — a market-crushing outperformance compared to162%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. *Stock Advisor returns as of May 5, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Hims & Hers Health, Shopify, and Walt Disney. The Motley Fool has positions in and recommends Amazon, Meta Platforms, Netflix, Shopify, and Walt Disney. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
The Herald
11-05-2025
- Business
- The Herald
Wellness companies eager to avoid WeightWatchers' fate embrace weight-loss drugs
WeightWatchers, when it filed for bankruptcy, said its weight management system stopped being attractive to customers given changing views about weight versus wellness, competition from telehealth companies fully embracing the weight-loss drugs, and even fitness influencers on TikTok. The company has an agreement with creditors to restructure its debt and quickly exit the court process. Adam McBride, CEO of telehealth company Eden, said WeightWatchers, which tried to pivot to telehealth and sell weight-loss drugs, had an old school system that relied on points and in-person gatherings that customers didn't like. 'I don't think that they were listening to their members,' McBride said. Eden and rival Noom both operate weight-focused telehealth platforms with integrated lifestyle coaching — something WeightWatchers struggled with. The newer companies have been selling unbranded versions of the in-demand weight-loss medications as part of their offerings. Clinical subscriptions that provide access to clinicians and prescription drugs make up over half of Noom's revenue, said CEO Geoff Cook. At rival Hims and Hers, compounded weight-loss drugs accounted for 20% of revenue last year, and even WeightWatchers relied partly on such revenue. Noom presents the drugs as a kind of superpower weight-loss tool, which the company said then drives customers to other parts of its platform. 'In the last month or two, people who are taking the meds are actually logging more meals,' said Noom's CEO. 'They're weighing in more and they're engaging in the other aspects of the Noom programme at a rate that's even better than the flagship programme.' Weight-loss drug bandwagon Other health companies see room for products and services that take advantage of the popularity of new weight-loss drugs, which some analysts forecast will have annual sales of $150bn in the next decade. Health retailer The Vitamin Shoppe has seen a spike in demand for supplements that could help with loss of appetite, decreasing muscle tone, and other GLP-1 side effects, said president Muriel Gonzalez. Sales of a set of supplements marketed to people taking such drugs jumped more than 20% from a year ago, a company spokesperson said. Last year, The Vitamin Shoppe launched a telehealth service, Whole Health Rx, that connects consumers with medical providers who can prescribe weight-loss drugs and recommend supplements to give people protein, fibre and multivitamins while on them. Other companies have made similar moves. Supplement-seller GNC, looking to capitalise on the trend, last year added a section in stores dedicated to GLP-1 users, selling protein powder and fibre. WeightWatchers itself is still trying to pivot. A spokesperson said in a statement that the GLP-1 drugs for weight loss are a growing and essential part of its business. It said its programme works, citing an internal study in which its clinic patients taking GLP-1 drugs lost 21% of their weight and then transitioned to its behavioural programme and lost another 2% after 13 weeks. But easy sales of cheaper versions of the drugs are ending, even as lawsuits remain. The US Food and Drug Administration is blocking sales of cheaper compounded versions of the drugs now that Wegovy and Zepbound and their related diabetes medicines — Ozempic and Mounjaro — are no longer in shortage. Selling cheaper versions of the drugs has been a huge profit driver for these companies, and the loss is an issue, said Morningstar healthcare analyst Karen Andersen. One path forward for wellness companies is to work with brand name drugmakers, Andersen said. 'Companies like Novo, they need partners that have access to patients,' she said. But finding creative ways to partner with key competitors is no small task, she added. 'It will be a rocky path.' Reuters
