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

Core Insights - Hims & Hers Health, Inc. (HIMS) has seen a significant stock increase of 85.1% over the past three months, outperforming the industry and major competitors [1][10] - The company has made strategic moves, including the acquisition of ZAVA, a digital health platform in Europe, and a collaboration with Novo Nordisk [2][12][14] - Despite challenges such as lower wholesale revenues and contracting gross margins, HIMS is expected to maintain positive market momentum [3][8][17] Financial Performance - HIMS anticipates second-quarter 2025 revenues between $530 million and $550 million, reflecting a year-over-year increase of 68-74%, and full-year revenues between $2.3 billion and $2.4 billion, representing growth of 56-63% from 2024 [9][10] - The Zacks Consensus Estimate for second-quarter revenues is $551.8 million, with earnings per share estimated at 17 cents [9] - HIMS' forward 12-month price-to-sales (P/S) ratio is 5.3X, lower than the industry average of 6X but higher than its five-year median of 2.6X [18] Strategic Developments - The acquisition of ZAVA is a key step in HIMS' international expansion, targeting markets in the U.K., Germany, France, and Ireland [14][15] - HIMS plans to enhance its digital health offerings in Europe, focusing on personalized care across various health domains [15] - The company has also announced a $870 million convertible senior notes offering to support global expansion and investment in AI and personalized treatments [13] Market Position - HIMS has outperformed competitors like Teladoc Health, Inc. and American Well Corporation, whose shares have declined by 13.7% and 13.3%, respectively, in the same timeframe [7] - The company is positioned favorably in terms of core business strength and global opportunities, with a Zacks Rank of 2 (Buy) indicating strong growth prospects [22][23]