Hims & Hers Health stock shot up nearly 33% Tuesday after it reported a pivot to profit Monday. The company reported its first quarterly profit and saw its sales soar 48% last quarter. Also on Tuesday, HIMS stock got a major Relative Strength (RS) Rating upgrade, from 75 to 84.
The upgraded 84 RS Rating means HIMS stock tops 84% of all stocks for price appreciation over the past 52 weeks. It's notable because research shows that top-performing stocks often have an RS Rating over 80 in the early stages of their moves.
HIMS Stock Rebounds
San Francisco-based Hims & Hers went public in 2019, and the online health products and services site boomed when the pandemic hit. HIMS stock crashed as the pandemic faded and people ventured outside, but it's on the rise again.
It operates two separate sites, HIMs for men and HERs for women. It says on its website that it offers products and services for a wide variety of sectors including sexual health, anxiety, regrowing hair, skin care and weight control, among others.
On Monday, Hims & Hers reported a 1-cent per share profit, reversing from a 5-cent loss the same quarter a year earlier. Revenue jumped 48% to $246.6 million. Analyst consensus is for the company to report a 9-cent profit for the year.
Co-founder and CEO Andrew Dudum commented in the earnings release that, "In 2024, we expect to eclipse $1 billion in revenue and deliver our first full year of net income profitability through a continued focus on building personalized and accessible treatments in each of our core specialties."
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Its Stock Shot Past Buy Zone
Hims & Hers Health has climbed more than 5% past a 12.04 entry in a second-stage cup without handle, meaning it's now out of a proper buy range. Look for the stock to offer a new chance to get in like a three-weeks tight or pullback to the 50-day or 10-week moving average.
HIMS stock holds the No. 4 rank among its peers in the Computer Software-Medical industry group. Doximity and Evolent Health are also among the group's highest-rated stocks.
When researching the best stocks to buy and watch, relative price strength is a good indicator. IBD's unique Relative Strength Rating identifies market leadership with a 1 (worst) to 99 (best) score.
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