What Happened?
Shares of telehealth company Hims & Hers Health (NYSE: HIMS) jumped 5.7% in the afternoon session after the company announced the launch of perimenopause and menopause treatment options on its platform. This expansion into women's health offered customers access to personalized treatment plans and prescription medications, including estradiol and progesterone. The treatments were made available in various forms such as pills, patches, and creams. The move was seen as a significant step for the company, which was reportedly on a path to achieve over $1 billion in annual revenue by 2026. By adding these hormone-replacement therapies, Hims & Hers broadened its services for its large subscriber base.
Is now the time to buy Hims & Hers Health? Access our full analysis report here.
What Is The Market Telling Us
Hims & Hers Health’s shares are extremely volatile and have had 98 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 5 days ago when the stock dropped 6.5% on the news that a Bank of America report highlighted weakening order trends and a lowered fourth-quarter revenue forecast. The bank's analysis noted that orders were down 16% year-over-year in September, raising concerns about the company's growth trajectory into the fourth quarter. As a result, BofA Securities lowered its fourth-quarter revenue forecast for Hims & Hers to $590 million, which was 6.5% below the consensus estimate. The report pointed to several challenges, including slowing core growth, increased competition, and possible pressure on customer conversion rates.
Hims & Hers Health is up 135% since the beginning of the year, but at $59.34 per share, it is still trading 13.7% below its 52-week high of $68.74 from February 2025. Investors who bought $1,000 worth of Hims & Hers Health’s shares 5 years ago would now be looking at an investment worth $5,662.
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
