Hims & Hers stock price continues to fire on all cylinders this year and is hovering near its highest level on record. It has soared by almost 1,500% from its lowest level in 2023, transforming it into a leading juggernaut with a market cap of over $9.3 billion. This scale makes its valuation higher than Walgreens Boots Alliance, the second-biggest pharmacy chain in the US.
Why the Hims & Hers stock is surging
Hims & Hers is one of the fastest-growing companies in the healthcare industry in the United States. It is an online-first that operates websites targeting key areas affecting men and women.
Hims & Hers focuses on a handful of segments in the healthcare sector, including sex, weight loss, skin, anxiety, and hair. The women segment has products to control their cycles and improve their wellness.
These are all large segments that affect millions of Americans. We believe that all Americans face one of these issues at some point, giving it a large total addressable market.
Hims & Hers business has grown rapidly in the past few years because of the brand awareness and demand for its solutions. Its annual revenue has soared from $82.6 million in 2019 to over $872 million in the last financial year. The trailing twelve-month revenue was $1.24 billion.
The most recent results showed that Hims business did well, helped by its weight loss drugs that are cheaper than those sold by large firms like Novo Nordisk and Eli Lilly.
The data showed that its revenue rose by 77% to over $401 million during the quarter, making it one of the fastest-growing firm in the sector.
Hims & Hers has also moved from a loss-making company to one that is highly profitable. Its net income rose to $75.6 million, while the adjusted EBITDA soared by 317% to $51.1 million.
Earnings ahead
The HIMS stock has been highly volatile as investors focused on a controversial Super Bowl advert. That ad, while expensive, will likely lead to more brand awareness for the company, and potentially more sales. However, in the future, not many people will remember that ad, meaning that it is wrong to make investment decisions solely based on it.
The next key catalyst for the Hims & Hers stock price will be its earnings report scheduled for later this month. Analysts anticipate that its revenue will come in at $470 million, representing a 90% annual growth rate. That figure will bring the annual revenue to $1.46 billion, a 67% YoY growth rate.
Hims & Hers revenue for 2025 is expected to be $2.08 billion, a 42% increase from what it made last year. The company will likely report better results since it has a long history of beating the analyst estimates.
A key issue is that Hims stock seems overvalued since it has a forward P/E ratio of 78, higher than the sector median of 27.
Read more: Is the soaring Hims & Hers stock a good investment?
Hims & Hers stock price analysis
HIMS chart by TradingView
The weekly chart shows that the HIMS share price has been in a strong bull run in the past few months. It recently crossed the key resistance level at $25.37, the upper side of the cup and handle pattern.
This pattern is characterized by an horizontal line and a rounded bottom and a handle. It then formed a break and retest pattern by retesting the upper side of the pattern, a popular continuation sign.
Therefore, the stock will likely continue rising, with the next level to watch being at $48.63. This HIMS target is derived from measuring the cup’s depth and then taking the measurement from its upper side. The stock may jump to that level and then lose the momentum. That target is also notable since it will mark the end of the third phase of the Elliot Wave pattern.
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