Mitrade Insights is dedicated to providing investors with rich, timely and most valuable financial information to help investors grasp the market situation and find timely trading opportunities.

2021

Best News & Analysis Provider

FxDailyInfo

2022

Best Forex Educational Resources Global

International Business Magazine

Insights

News

Is Hims & Hers Health Stock a Smart Buy After Plunging More Than 50%?

Source The Motley Fool

What goes up can come down. Investors who jumped on the Hims & Hers Health (NYSE: HIMS) bandwagon have experienced this pain first-hand.

Shares of the health and wellness platform operator skyrocketed more than 670% between Jan. 1, 2024, and Feb. 19, 2025. However, this sizzling momentum came to a screeching halt in recent weeks. Hims & Hers stock plunged more than 50% at one point. Is this once-high-flying healthcare stock a smart buy now?

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

Behind Hims & Hers' huge decline

Much of the excitement over Hims & Hers has been connected to the company's sales of compounded versions of GLP-1 inhibitor semaglutide. Novo Nordisk markets semaglutide as a treatment for type 2 diabetes under the brand name Ozempic and for treating weight loss under the brand name Wegovy.

Hims & Hers was able to sell compounded semaglutide only because of a U.S. Food and Drug Administration (FDA) loophole that allowed such sales when a national shortage of the drug existed. However, the FDA declared on Feb. 21, 2025, that this shortage was over.

CFO Oluyemi Okupe confirmed on Hims & Hers Health's fourth-quarter earnings call a few days after the FDA announcement that semaglutide "will not be offered on the platform after the first quarter." The company's guidance of $725 million in full-year 2025 from its weight-loss business excluded semaglutide sales.

Some good news

Despite the shellacking Hims & Hers Health stock took after the FDA's decision, there is some good news for investors. For one thing, the stock has rebounded somewhat after bottoming out. That could be a sign that the worst is over.

Hims & Hers' revenue guidance for 2025 was also quite good when put into context. The company projects revenue of between $2.3 billion and $2.4 billion. The midpoint of that range reflects a year-over-year increase of 59%.

Over two-thirds of Hims & Hers' revenue comes from products unrelated to weight loss. Men's dermatology, women's dermatology, mental health, and sexual health are all expected to generate sales this year of more than $100 million. Dermatology is an especially fast-growing area, with the number of subscribers in men's and women's dermatology jumping more than 55% and 100% year over year, respectively, in the fourth quarter of 2024.

Importantly, Hims & Hers Health also has other weight-loss offerings beyond compounded semaglutide. The company's oral weight-loss products remain very popular, particularly with costs running as low as $69 per month. CEO Andrew Dudum emphasized in the Q4 earnings call that these products can cost less than half the price of semaglutide.

Also, Hims & Hers plans to launch a generic version of Novo Nordisk's GLP-1 inhibitor Victoza (liraglutide) later this year. Dudum said, "I think we have a lot of excitement for that medication because we think it will be a nice thing to add to the arsenal and be very successful for a certain group of people."

Is this beaten-down stock a smart pick now?

A sell-off of over 50% of a stock that's still on track to deliver exceptional revenue growth would ordinarily reflect an overreaction by investors. Is that the case with Hims & Hers Health? I don't think so -- for one simple reason: Even after the sharp decline, Hims & Hers trades at nearly 63 times forward earnings.

Perhaps Hims & Hers will be able to continue its remarkable growth for years to come despite losing the ability to sell semaglutide. On the other hand, the potential approval of new obesity drugs, notably including an oral version of semaglutide as well as other more powerful medications, could make it harder for companies such as Hims & Hers to compete in the weight-loss market.

Maybe Hims & Hers Health's plunge was overdone. But there's a pretty good argument to be made that the stock had risen much more than was justified based on its business prospects before the FDA decision led to a sharp sell-off.

Should you invest $1,000 in Hims & Hers Health right now?

Before you buy stock in Hims & Hers Health, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Hims & Hers Health wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $697,245!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of March 24, 2025

Keith Speights has no position in any of the stocks mentioned. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.

Recommended Articles

October hike odds climb toward 60% as Goldman and BofA both flip — what Warsh's "dose of accommodation" really changed Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.

Author Irene Q.

Sep 23, Wed

Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.

Four jobs reports in five days: what JOLTS, ADP, claims and the September payrolls mean for the October Fed decision The US labour market faces its densest data week of the month. JOLTS job openings land Tuesday (7.2 million expected), ADP on Wednesday (70,000 expected), initial claims on Thursday and the September non-farm payrolls on Friday (100,000 expected, down from 162,000). Markets price a 64%-70% chance of another quarter-point Fed hike on October 28. The dollar index sits at 100.77 and the S&P 500 at 7,729.8.

Author Mitrade

Sep 28, Mon

The US labour market faces its densest data week of the month. JOLTS job openings land Tuesday (7.2 million expected), ADP on Wednesday (70,000 expected), initial claims on Thursday and the September non-farm payrolls on Friday (100,000 expected, down from 162,000). Markets price a 64%-70% chance of another quarter-point Fed hike on October 28. The dollar index sits at 100.77 and the S&P 500 at 7,729.8.

Nvidia's $150 billion buyback landed — and the AI sector fell anyway. That's the signal worth trading Nvidia closed up 1.68% at $228.86 on 28 September after announcing a $150 billion share repurchase authorisation, the largest single corporate buyback on record, while the rest of the AI complex sold off: AMD -3.6%, Micron -2.6%, Meta -4.8% and the Philadelphia Semiconductor Index -1.61%. The divergence is not noise. Capital is rotating toward cash-flow certainty, not abandoning the AI theme. With Micron reporting after the close on 30 September, here is what the split means.

Author Irene Q.

Sep 29, Tue

Nvidia closed up 1.68% at $228.86 on 28 September after announcing a $150 billion share repurchase authorisation, the largest single corporate buyback on record, while the rest of the AI complex sold off: AMD -3.6%, Micron -2.6%, Meta -4.8% and the Philadelphia Semiconductor Index -1.61%. The divergence is not noise. Capital is rotating toward cash-flow certainty, not abandoning the AI theme. With Micron reporting after the close on 30 September, here is what the split means.

【Daily Brief】30-year Treasury tops 5.59%, S&P 500 slips to 7,670 and gold holds $4,180 — PCE lands tonight The 30-year Treasury yield closed at 5.59%, its highest since June 2002, and the Dow fell 131.59 points to 51,349.92. US consumer confidence dropped to 81.9, a 12-year low, and JOLTS job openings fell to 7.1 million. August PCE and Q3 GDP both land at 8:30am ET tonight.

Author Suzie

Sep 30, Wed

The 30-year Treasury yield closed at 5.59%, its highest since June 2002, and the Dow fell 131.59 points to 51,349.92. US consumer confidence dropped to 81.9, a 12-year low, and JOLTS job openings fell to 7.1 million. August PCE and Q3 GDP both land at 8:30am ET tonight.

Gold falls to near $4,150 as higher Treasury yields, oil prices outweigh softer PCE inflation Gold price (XAU/USD) tumbles to near $4,150 during the early Asian session on Thursday, pressured by elevated US Treasury bond yields. Traders await the US September employment data for fresh impetus, which will be released later on Friday.

Author FXStreet

10 hours ago

Gold price (XAU/USD) tumbles to near $4,150 during the early Asian session on Thursday, pressured by elevated US Treasury bond yields. Traders await the US September employment data for fresh impetus, which will be released later on Friday.

Popular Symbols