Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside* |
|---|---|---|---|---|---|---|---|
| 2 May, 25 | HIMS | Buy | USD 37.0 | USD 39.2 | USD 41.0 | 2 days | 10.8% |
*Potential Upside (%) indicates the expected percentage increase from the Entry Price to the Target 2 Price.
Data Powered by EOD Historical Data (“EODHD”).
Hims & Hers Health, Inc. operates a telehealth platform that connects consumers to licensed healthcare professionals. The company offers a range of health and wellness products and services available to purchase on its websites and mobile application directly by customers. It also provides prescription medication on a recurring basis and ongoing care from healthcare providers; and over-the-counter drug and device products, cosmetics, and supplement products, primarily focusing on wellness, sexual health and wellness, skincare, and hair care. The company's curated non-prescription products include vitamin C, melatonin, biotin, and collagen protein supplements in the wellness category; moisturizer, serums, and face wash in the skincare category; condoms, climax delay spray and wipes, vibrators, and lubricants in the sexual health and wellness category; and shampoos, conditioners, scalp scrubs, and topical treatments, such as minoxidil in the hair care category. In addition, it offers medical consultation services, as well as health and wellness products through wholesale partners. The company is based in San Francisco, California.
Subscriber Growth: Subscribers rose 45% YoY, reaching 2.2 million by year-end
Revenue Growth: Total revenue increased by 69% YoY to $1.48 billion in 2024
Increased Dependence on GLP-1 Offering: Revenue excluding GLP-1 grew 43%, while total revenue grew 69%, highlighting a growing reliance on the weight loss product line for topline growth
Gross Margin Decline: Gross margin fell from 82% in 2023 to 79% in 2024, indicating rising costs or pricing pressure
Hims & Hers faces the risk of over-reliance on a narrow set of high-growth offerings, particularly its GLP-1 weight loss products, making it vulnerable to regulatory, competitive, or supply disruptions in that category
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 37.0 | 32.5 | 39.2 | 41.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Strong Revenue and Subscriber Growth in 2024: Hims & Hers Health, Inc. (NYSE: HIMS), a leading digital health and wellness platform, reported full-year 2024 revenue of $1.48 billion, marking a 69% increase from $872 million in 2023. This surge was largely driven by strong adoption of its offerings, particularly the GLP-1-based weight loss product line. The company's subscriber base grew 45% year-over-year, reaching 2.2 million by the end of 2024, indicating rising consumer trust in its platform and services.
Improving Profitability and Operational Efficiency: The company posted a net income of $126 million for the year, compared to a net loss of $23.5 million in 2023. Adjusted EBITDA rose sharply to $176.9 million in 2024 from $49.5 million in the prior year. This reflects growing profitability and enhanced operational efficiency, supported by increasing scale and product mix optimization. The release of a $68 million domestic deferred tax valuation allowance also contributed significantly to net income.
Fourth Quarter Performance Highlights: In the fourth quarter of 2024, Hims & Hers recorded $481.1 million in revenue, up 95% from $246.6 million in Q4 2023. Net income rose to $26 million compared to $1.2 million in the prior-year quarter. Adjusted EBITDA for the quarter came in at $54.1 million, more than doubling year-over-year. Free cash flow and operating cash flow for the quarter were also robust at $59.5 million and $86.4 million, respectively.
Enhanced Monetization and Customer Economics: Key performance indicators continued to strengthen. Average Order Value (AOV) for 2024 increased 41% year-over-year to $137, while Monthly Online Revenue per Average Subscriber rose 19% to $64. Online revenue alone reached $1.44 billion for the year, up 71% from 2023, and revenue excluding the GLP-1 offering still grew 43% to over $1.2 billion—achieving the company’s previous 2025 target a year ahead of schedule.
Platform Strategy and Long-Term Vision: CEO Andrew Dudum emphasized that Hims & Hers is building a next-generation healthcare platform combining personalization and technology to deliver scalable, affordable, and high-quality care. With over two million active subscribers and continued growth across multiple specialties, the company aims to further democratize access to precision care while developing tools and technologies that can extend beyond its platform to a broader audience.
Technical Commentary:
HIMS's stock price found support at important levels, moved higher, and established a swing high on the daily chart, suggesting the potential for further upward movement. The 14-period RSI is currently above the midpoint, reinforcing a bullish outlook. Additionally, the stock is trading above both its 21-day Simple Moving Average, which further bolsters this positive perspective. Overall, these factors indicate a predominantly optimistic outlook.
As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Buy’ rating has been given to Hims & Hers Health, Inc. (NYSE: HIMS) at its current market price of USD 37.00 as of May 2, 2025 (6:31 am PDT).
Data Powered by EOD Historical Data (“EODHD”).
Sector: Consumer Defensive Industry: Household & Personal Products
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| HIMS Hims Hers Health Inc |
-2.0795 3.40% | 59.13 | - | 35.59 | 2.34 | 5.58 | 2.28 | -37.1743 |
| PG Procter & Gamble Company |
0.11 0.07% | 165.75 | 23.58 | 22.62 | 4.07 | 7.24 | 4.40 | 16.08 |
| LRLCF L'Oréal S.A |
- -% | 418.70 | 41.14 | 34.25 | 6.52 | 8.59 | 6.67 | 27.76 |
| LRLCY L’Oreal Co ADR |
1.67 1.95% | 87.49 | 41.27 | 33.90 | 6.56 | 8.50 | 6.65 | 27.67 |
| UNLYF Unilever PLC |
0.002 0.0032% | 61.89 | 21.17 | 17.33 | 2.44 | 6.76 | 2.66 | 12.91 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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