NONOF - Hims & Hers: Beware Of Chasing Weight Loss Drugs FOMO

2024-06-10 12:06:11 ET

Summary

• Hims & Hers stock has easily outperformed the market over the past year, surging almost 130%.
• Hims & Hers' personalized care platform is a critical growth driver poised to expand further.
• Hims & Hers is targeting the weight loss drugs market and has launched compounded versions of Novo Nordisk's Wegovy and Lilly's Zepbound.
• HIMS valuation has also surged to nose-bleed levels when compared to peers.
• I argue why investors who missed out on chasing the HIMS FOMO earlier shouldn't be tempted to buy now.

Hims & Hers Stock Outperformed Easily

Hims & Hers Health, Inc. ( HIMS ) investors have seen shares outperform the market significantly over the past year, as HIMS delivered a 1Y total return of almost 130%. As a result, HIMS' bullish momentum has continued since it bottomed in May 2022. Hims & Hers has also not disappointed dip-buyers who bought into the market's pessimism then, as HIMS posted GAAP net income of $11.1M in the first quarter, "representing a significant turnaround" from HIMS' net loss position in the previous year. HIMS' confidence in achieving GAAP profitability for FY2024 has also justified the sustainability of its business model. As a result, I assess that HIMS' bullish bias isn't a fluke but a mark of robust execution and significant market share gains over the past year....

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