Can Sustained Product Demand Drive HIMS Stock Before Q3 Earnings?

Core Insights - Hims & Hers Health, Inc. (HIMS) is set to report its third-quarter 2025 results on November 3, with expectations of improved revenues and earnings per share (EPS) compared to the previous year [1][5]. Performance Factors - The company is anticipated to benefit from the expansion of its personalized healthcare platform, which enhances customer engagement and retention [3]. - Investments in lab testing and pharmacy infrastructure are expected to lead to deeper customization of treatment plans and faster care delivery, increasing subscriber lifetime value [3]. - The launch of the men's hormonal health category, including the oral testosterone product KYZATREX, is likely to attract new male subscribers [4]. - Enhanced AI capabilities are expected to streamline operations, improve customer experience, and bolster user retention and margins [4]. Financial Estimates - The Zacks Consensus Estimate for revenues in Q3 2025 is $583.7 million, reflecting a 45.4% increase from the prior year [5]. - The consensus estimate for EPS is 9 cents, indicating a 50% increase from the previous year's figure [5]. Stock Performance - Over the past three months, HIMS shares have decreased by 28.1%, underperforming the Medical Info Systems sector and the S&P 500 [10]. - HIMS' forward 12-month price-to-sales (P/S) ratio is 3.9X, which is lower than the industry average of 5.8X, suggesting a potential undervaluation relative to expected sales growth [14][17]. Long-Term Growth Potential - The company is expanding into women's hormonal health, targeting a significant market of women entering menopause, with expectations of reaching $1 billion in annual revenues by 2026 [18]. - Hims & Hers is also focusing on global expansion and AI infrastructure development, which are expected to enhance operational efficiency and care outcomes [19]. Investment Outlook - The company shows strong core business strength and growth prospects, making it a potential hold for existing investors [20]. - Valuation metrics suggest that HIMS may outperform its industry peers, but caution is advised for new investments before the earnings report due to the negative Earnings ESP [21].