Hims & Hers Health is Wednesday's pick for IBD 50 Growth Stocks To Watch as the telehealth stock is nearing a buy point. Hims stock jumped more than 8% during Wednesday's trade and is on pace for four consecutive wins.
The online health care provider will post its second-quarter earnings report Monday after the market close. Analysts expect triple-digit growth on one of its metrics.
On Tuesday, the company said its personalized compounded GLP-1s – a class of medications that help manage blood sugar used for diabetes and weight loss – is driving sustainable weight loss.
Customers "taking a compounded GLP-1 reported losing an average of 20.9 pounds or 10.3% of initial body weight, within six months, while reporting a low rate of side effects," Hims & Hers Health said.
The company operates a health and wellness platform and online pharmacy selling prescription and over-the-counter medicines. It touted a subscriber base of nearly 2.4 million in the first quarter.
The stock ranks No. 3 in the IBD 50. It also holds the top spot out of 38 stocks in the Medical-Services group, which is ranked 84 out of the 197 industry groups that Investor's Business Daily tracks.
Stocks To Buy And Watch: Top IPOs, Big And Small Caps, Growth Stocks
Hims Stock Recovers From A Sell-Off
Shares have climbed back from the 34.6% plunge on June 23 after Hims & Hers Health parted ways with Novo Nordisk after a monthlong collaboration.
Hims stock is nearing the 67.37 buy point of an early-stage consolidation pattern, according to MarketSurge pattern recognition. The stock reset its base count after its January breakout from a stage-three cup base reversed sharply and it fell below the 35.02 buy point in March.
Shares reclaimed their 50-day moving average last week.
Like the stock, its relative strength line has steep peaks and valleys, but is on a long-term uptrend. The stock has been erratic, as seen in its 6.8% 21-day average true range, or ATR.
Despite its choppy action, the stock holds a 98 IBD Relative Strength Rating. Hims stock has gained around 29% in July and 166% so far this year.
Its IBD Accumulation/Distribution Rating of A- indicates fairly heavy institutional buying over the last 13 weeks.
Profit Climbs For Health Care Provider
Analysts expect second-quarter earnings of 15 cents per share vs. six cents per share a year ago, or a 151% increase.
Sales growth is forecast to decelerate from the 111% increase logged in the first quarter. Projections show a 75% increase in the second quarter, followed by a decline to 17% over the following three quarters.
The company guided second-quarter sales of $530 million to $550 million, while analysts see $551.7 million, according to FactSet.
Hims also expects full-year 2025 sales of $2.3 billion to $2.4 billion, according to its first-quarter earnings release.
The telehealth company turned profitable in 2024. Full-year 2025 estimates call for earnings to jump 137% followed by 43% in 2026.
Lastly, it holds the best-possible 99 Composite Rating.
Follow Kimberley Koenig for more stock market news on X, the platform formerly known as Twitter, @IBD_KKoenig.
