Why Hims & Hers Health Stock Is Skyrocketing Today

Shares of Hims & Hers Health Inc (NYSE: HIMS) are flying higher on Wednesday. The company's stock gained 21.7% as of 2:00 p.m. ET, and was up as much as 24.8% earlier in the day. The gain comes as the S&P 500 gained 0.1%, and the Nasdaq Composite was flat.

Hims & Hers, a leading telehealth platform, announced today that it plans to introduce at-home testing for its customers after acquiring a new lab.

Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »

What happened

The company acquired Trybe Labs, an at-home testing facility in New Jersey. The facilities will allow Hims to test blood samples sent through the mail. The company says that the at-home testing "will empower customers to take control of their health with deeper insights" and "help identify risk of disease before it develops."

Why it matters

The testing will help Hims & Hers more readily offer a wider array of treatments, supplements, and medications for ailments that require blood work to be diagnosed, eliminating the need for customers to visit a blood lab.

Removing this friction will likely lead to customer growth and higher treatment rates for "high impact" -- read: lucrative -- clinical categories like low testosterone and menopausal support.

What's next

Hims & Hers' stock has been on quite a run, up more than 600% in the last year. The company is firing on all cylinders and seems to have proven the model works. However, there is reason to be cautious. With a price-to-earnings ratio of 160, the stock is expensive. Given its current growth pattern, that valuation wouldn't be entirely unreasonable, but that growth is in danger of slowing down considerably.

At present, Hims & Hers and other telehealth companies are able to sell compounded GLP-1 drugs to patients -- essentially generic versions of drugs like Ozempic. Here's the catch: These drugs are still under patent. The FDA is allowing Hims and its competitors to do this temporarily due to a shortage, and it is entirely possible that this critical revenue stream will disappear in the not-so-distant future.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $361,466!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $46,349!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $558,625!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

Learn more »

*Stock Advisor returns as of February 3, 2025

Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.