Hims & Hers Health is approaching a buy point and an all-time high. Now, Hims stock sits atop the IBD 50 growth list and is today's selection for IBD 50 Stocks To Watch.
The medical services stock plunged below the 50-day moving average on Aug. 1 but bucked the larger pullback in the stock market on Aug. 5 ahead of second-quarter results. It now is near an entry of 25.74 in a consolidation base.
Though sales and earnings growth picked up from the prior quarter, shares sold off as its sales outlook for the current quarter disappointed.
At the midpoint, the company's outlook suggests $378 million in sales, below analyst views of $381.5 million. For the full year, the company expects sales of $1.39 billion.
After several quarters of losses, the company turned around and posted profits in the three most recent quarters. During the quarter ended June 30, earnings of 6 cents per share on sales of $315.7 million showed a recovery from a loss of 4 cents a share in the prior year on sales of $226.7 million.
Hims Stock Among Top 2% In Price Performance
Recent earnings growth has helped boost the stock's Earnings Per Share Rating, which stands at 80. Its Composite Rating ranks at 91 out of a best-possible 99.
Hims' Relative Strength Rating, which ranks the stock in terms of its performance when compared to others in the Investor's Business Daily database, is a near ideal 98 and shows that the stock is in the top 2% of all stocks in terms of its 52-week performance. Hims stock also ranks first in the medical services group.
Shares gapped up on Monday last week after reports that the Food and Drug Administration will reconsider its opinion on a drug shortage which allowed medication compounders to copy Eli Lilly's weight loss and diabetes drug at a lower price tag.
Earlier, the agency had ruled that the active ingredient in the weight-loss drug was no longer in shortage.
Offering Access To Provider Networks
Hims & Hers provides a platform that gives customers access to provider networks, medical records and digital prescriptions as well as prescription and nonprescription drugs through its website, mobile app and wholesalers.
The company will announce fiscal third-quarter results on Nov. 4.
Mutual funds own 51% of outstanding shares. More funds have been net buyers over the past three quarters and in the most recent 13 weeks, going by data on IBD MarketSurge and the stock's Accumulation/Distribution Rating of B.
Please follow VRamakrishnan on X/Twitter for more news on the stock market today.
