Is HIMS a good stock to buy?
We came across a bearish thesis on Hims & Hers Health, Inc. on Valueinvestorsclub.com by Pridwen
In this article, we will summarize the bears’ thesis on HIMS. Hims & Hers Health, Inc.’s share was trading at $27.51 as of June 2nd. HIMS’s trailing and forward P/E were 57.14 and 58.82 respectively according to Yahoo Finance. wavebreakmedia/ Hims & Hers Health (HIMS) is a leading consumer telehealth platform focused on treatments for erectile dysfunction, hair loss, hormone therapy, and weight loss, but the bearish thesis argues that the company’s recent growth has been driven largely by an unsustainable GLP-1 compounding business rather than durable core fundamentals. 15 AI Stocks That Are Quietly Making Investors Rich Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential HIMS benefited enormously from the GLP-1 shortage period, with revenue growth exceeding 100% and profitability expanding rapidly, but critics contend that much of this growth occurred while operating in a legal gray area after the FDA shortage designation ended.
Following disputes with Novo Nordisk, including allegations surrounding compounded semaglutide offerings, HIMS ultimately entered a new partnership that requires transitioning customers toward branded GLP-1 products. While the market viewed the agreement positively and shares rose roughly 50%, bears believe investors are underestimating its economic impact. Compounded GLP-1 products historically generated highly attractive margins, and the shift to branded therapies could materially reduce gross profit per subscriber while also increasing churn as customers encounter lower-cost alternatives offered directly by drug manufacturers.