2024-07-19 09:35:38 ET
Summary
- Hims & Hers Health, Inc. has scaled the company's unique medicine & health ecommerce platform incredibly well through new product launches and excessive marketing.
- The company's generic medicine offering comes with a low moat, making Hims & Hers' successful branding and high marketing expenses the most notable competitive edge and a factor behind the success.
- While notable risks exist, including the lower moat, GLP-1 market's uncertainty, and insider sales, the stock's valuation is still attractive for now.
Hims & Hers Health, Inc. ( HIMS ) provides medical prescriptions for generic medicine, and prescription-free health products through the company’s ecommerce platform, focusing on sexual health, hair loss, mental health, and weight loss products. The more non-recurring offered products include skin care, shampoos, and other similar health products. Hims & Hers sources the products and services through a network of partnerships and the company's own built technology, enabling a capital light business model.
After a merger with a SPAC in 2021, Hims & Hers stock has now risen from the $10.00 SPAC price into $20.37. The stock has over doubled in the past year, only slowing down in the past few weeks as the company continues to push for aggressive earnings growth through new product launches and increased subscribers....
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Hims & Hers Health: Built On Successful Branding