Our Stock of the Week is Hims & Hers Health, Inc. (HIMS). HIMS operates a telehealth platform that connects consumers to licensed healthcare professionals in the United States, the United Kingdom, and internationally. It offers a range of curated prescription and non-prescription health and wellness products. It also provides prescription medication on a recurring basis and ongoing care from healthcare providers; it also provides over-the-counter drug and device products, cosmetics, and supplement products primarily focusing on general wellness, sexual health and wellness, skincare, and hair care. It has recently entered the weight-loss area and is offering the new class of drugs that have booming popularity.
The fourth quarter of 2023 was HIMS’s first profitable quarter after coming public as a SPAC. Revenue grew 48%. The company guided revenue growth of about 42% for the first quarter of 2024 and over $1 billion in revenue for the year. It also should be EBITDA positive going forward. Valuation is a little aggressive, so the company will need to perform well.
Technically, the stock ran up nicely following earnings and hit the $17 level. It has pulled back toward support at $14 to $14.50. We are looking for this to hold for the stock to start to anticipate the first quarter report sometime in May.
As always, we would not chase Monday morning strength but will look for some incremental accumulation as the stock tests support levels. We will keep tight stops and reduce if market conditions do not cooperate.
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 no 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.
