Why Hims & Hers Stock Blasted 16% Higher on Wednesday

Healthcare products specialist Hims & Hers Health (NYSE: HIMS) stock passed the most crucial exam of all on Wednesday, as investors gave it the thumbs-up. The shares ended the day more than 16% higher in price, thanks to the company's reveal that it's pushing into a potentially lucrative new segment. That rise was significantly better than the S&P 500's (SNPINDEX: ^GSPC) 0.4% increase that trading session.

Entering a new and promising segment

Wednesday morning, Hims & Hers announced it was launching a new specialty centered around perimenopause and menopause care for women. Treatment plans for these conditions will be available, customized to each patient according to their history and their personal preferences, the healthcare company said.

Image source: Getty Images.

Hims & Hers is pushing into this segment because management feels there is a deficit in healthcare options for women. By providing perimenopause and menopause care, it has an addressable market of around 1.3 million females in this country.

The company quoted chief medical officer Jessica Shepherd as saying, "Women have been navigating an outdated healthcare system that wasn't designed for them for too long. Hers was built to serve every woman on her terms."

"As one of the largest digital health platforms, we can help change the way women experience healthcare and thrive," she added.

Freedom of choice

As for the pharmaceutical side of things, along with treatment plans, Hims & Hers wrote, eligible patients will be able to obtain prescription medication in various forms.

The company did not provide any estimates for how the new offering might affect its fundamentals.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Hims & Hers Health. The Motley Fool has a disclosure policy.