We came across a bullish thesis on Hims & Hers Health, Inc. (HIMS) on La Newsletter de Momentum’s Substack by Mexican Investor. In this article, we will summarize the bulls’ thesis on HIMS. HIMS Technologies, Inc.’s share was trading at $17.77 as of Sept 27th. HIMS’s trailing and forward P/E were 222.12 and 42.37 respectively according to Yahoo Finance.
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Hims & Hers Health, Inc. is a telemedicine company founded in 2017. It aims to provide accessible healthcare services remotely, using technology to connect patients with licensed medical professionals through video consultations. The company’s business model uses a network of independent physicians and partnerships with established healthcare providers like Labcorp and Carbon Health. This allows Hims & Hers to offer a variety of services, including consultations and health-related products like prescription medications and skincare items. This flexible approach helps the company expand into new healthcare areas without needing a lot of investment.
Hims & Hers Health, Inc. is an interesting pick because of its innovative approach in the telemedicine industry and its potential for significant growth. The company operates in a sector that meets the growing demand for accessible healthcare services, especially in underserved areas like sexual health, dermatology, and mental health. By using technology, Hims & Hers provides a convenient platform that improves the healthcare experience. One of the key features of Hims & Hers is its flexible business model, which allows it to quickly adapt to market trends and include popular treatments like GLP-1 injections for weight loss. This flexibility not only expands the company’s product offerings but also positions it to take advantage of new healthcare needs without needing significant capital. Hims & Hers has shown strong financial performance, with revenues growing at an impressive 100% annual rate since it started. The company had its first profitable quarter in Q1 of 2024 and it expects revenues to be between $1.37 to $1.40 billion for fiscal year 2024, as this happens the potential for operating leverage becomes significant, with high gross margins of around 80% and a target adjusted EBITDA margin of 10% for the year.
Bulls believe that the recent drop in stock price offers a good chance to buy as the company can quickly adapt with the help of the variety of services it offers that meet growing consumer demand and the strategic partnerships that enhance its credibility and operations set it up for future growth.
Hims & Hers Health, Inc. is also not on our list of the 31 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held HIMS at the end of the second quarter which was 29 in the previous quarter. While we acknowledge the risk and potential of HIMS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than HIMS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.