Our Stock of the Week is Hims & Hers Health, Inc. (HIMS). Hims is a telehealth company with a focus on subscriptions and prescriptions to deal with chronic health conditions. The company started by selling drugs for erectile dysfunction but has expanded into other categories, such as hair loss, skincare, and mental health.
HIMS just announced that it is moving into the weight loss category. This is obviously a huge market and is highly competitive, but the telehealth approach is ideal for clients who do not want to visit a physician in person to receive a prescription for the new class of semaglutide drugs such as Ozempic and Wegovey, which have been so successful.
Following the news that HIMS is entering the obesity market, TD Cowen analyst Jonna Kim reiterated her ‘outperform’ rating and $11 target on the stock. She also names HIMS a Best 2024 Idea. The analyst commented, “HIMS is an underappreciated story with the potential to grow top line at a 25%+ CAGR in the medium term in an attractive health and wellness market that is more insulated from macro uncertainty. We like HIMS’ personalized offerings that drive recurring revenues & loyal engagement and see an opportunity to leverage expenses as the platform scales.”
Technically, the stock has formed a cup-and-handle pattern. It is pulling back to support at the 200-day simple moving average after a big run and may regroup before testing the ‘pivot’ area around $9. As always, we would not chase the stock to start the week but will look to aggressively trade it into volatility.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and buy or sell anytime for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, clients, employees, and affiliates of Hammerhead Financial Strategies, LLC, directly or indirectly, controlled investment and/or trading accounts containing positions in HIMS. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.
