American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Will the falling Hims & Hers stock price recover in 2025?

by admin December 22, 2024
December 22, 2024
Will the falling Hims & Hers stock price recover in 2025?

Hims & Hers stock price has greatly performed this year as it continued to disrupt the healthcare industry. HIMS has jumped by almost 200% this year, while other companies in the industry like CVS Health and Walgreens Boots Alliance and CVS Health, plunged. So, will the stock have more upside in 2025?

HIMS stock fell after a key FDA ruling

One reason why the Hims & Hers stock price surged has been its entry into the weight loss industry, where it offers quality drugs at a lower cost. 

This business may be under pressure soon, which explains why the stock has crashed by more than 25% from its highest level this year. 

In a statement last week, the Food and Drug Administration (FDA) warned that it was concerned about many weight drugs being sold in the market. In particular, it expressed concerns about compounded drugs, which it said were not approved. 

The FDA noted that it had received adverse events related with compounded semaglutide and tripeptide. Therefore, it is likely that Hims & Hers business will be affected because the weight loss segment is one of its fastest-growing segments. 

The company is seeing strong growth

Hims & Hers stock price surged this year as its business continued doing well because of its large total addressable market. As we have written before, its top markets like weight loss, hair loss, anxiety, and sexual health have a large total addressable market. For example, a report by Oxford noted that over 25% of men in the United States had an erectile dysfunction problem.

Estimates are that millions of Americans have weight issues. According to the CDC, about 9.4% of all Americans had an obesity problem. Also, more people are now more comfortable buying these drugs online, which was not the case a few years ago.

These trends explain why the Hims stock price has done well in the past few years. Its annual revenue stood at just $82.6 million in 2019, making it a fairly small company. Recently, however, its revenue has soared, hitting over $872 million in 2023 and $1.2 billion in the trailing twelve months. 

The most recent results showed that the Hims & Hers revenue jumped by 77% YoY to over $401.6 million. Analysts expect that this growth is just starting, with the current quarter’s revenue rising by 90% to over $469 million. 

The average estimate is that Hims & Hers annual revenue will get to $1.45 billion this year, followed by $2.03 billion in 2026. This trend makes it one of the fastest-growing companies in the healthcare industry.

Hims & Hers is seeing profitable growth. The average estimate is that its EPS will be 22 cents in this quarter, up from $0.05 a year ago. Its annual EPS will move to 8 cents this year, followed by 93 cents in the following year. This growth will help the company justify its high valuation, with its market cap standing at over $5.7 billion today.

Hims & Hers stock price analysis

The daily chart shows that the HIMS share price peaked at $35 in November. As we predicted, it erased some of those gains after the FDA ruling.

The stock’s retreat has seen it retest the important support level at $25.75, its highest swing on June 17. This pattern is known as a break and retest, and is one of the most bullish continuation signs.

The stock has found support at the 50-day Exponential Moving Average. Therefore, there are odds that the stock will bounce back soon and retest the important resistance point at $35, the year-to-date high. A drop below the support at $22 will invalidate the bullish view.

The post Will the falling Hims & Hers stock price recover in 2025? appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
US inflation cools in November, offering relief amidst Fed concerns
next post
Coursera stock price analysis: will this edtech giant rebound?

Related Posts

Elon Musk says his companies are ‘suffering’ due...

March 29, 2025

US consumer sentiment drops to 7-month low as...

February 8, 2025

Capri Holdings stock price is heading towards a...

October 31, 2024

GE Aviation stock gets overbought and overvalued: is...

September 24, 2024

Europe market open: Stoxx 600 edges lower before...

April 17, 2025

Wall Street legend says US stocks are in...

March 3, 2025

Long MOGO: Mogo Inc. Q3 Earnings Highlight Strong...

November 7, 2024

From Hyundai, Kia to Tesla: here’s how Trump’s...

March 27, 2025

Renewable energy demand could triple as electricity consumption...

July 26, 2024

FARTCOIN eyes 45% rebound as market sentiments shift

March 21, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (3,002)
    • Investing (2,453)
    • Latest News (1,994)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved