Hims & Hers Health

HIMS

Market cap $7.13B

Investors interested in stocks from the Medical Info Systems sector have probably already heard of Omnicell (OMCL) and Hims & Hers Health, Inc. (HIMS). But which of these two stocks presents investors with the better value opportunity right now?

In the most recent trading session, Hims & Hers Health, Inc. (HIMS) closed at $32.34, indicating a +2.05% shift from the previous trading day.

HIMS broadens access to provider-led care with new offerings in diagnostics, hormonal health and at-home testing.

Hims & Hers stock has nosedived in the past few months. It has dived by over 56% from its highest point in July last year and is now hovering at its lowest level since April.

Hims & Hers Health remains a speculative buy for aggressive growth investors, driven by its pivot toward precision medicine and AI-enabled healthcare. Recent volatility stems from regulatory risks, the Novo Nordisk partnership breakup, and shifting GLP-1 compounding regulations impacting revenue and investor sentiment. HIMS's valuation sits between telehealth and AI/genomics peers, with substantial upside if it becomes more like AI/genomics companies but significant downside if risks materialize.

Hims & Hers is down 50% from all-time highs amid fading momentum in their compounded GLP-1 offerings, while new growth vectors are yet to translate into revenue acceleration. Sequential revenue deceleration, margin contraction, and lowered FY25 guidance have pressured Hims stock, but management maintains ambitious 2030 targets. New growth vectors—testosterone, menopause, Labs, and international expansion are promising, yet have not driven meaningful revenue acceleration.

HIMS expands into Canada and the U.K. while revenue and subscribers grow. However, margins and execution raise concerns.

Hims & Hers Health is significantly undervalued, with the market underestimating its growth potential and international expansion opportunities. Geographical and product expansion, vertical integration, and a unique personalized offering position HIMS to regain historical growth rates by 2026 and beyond. Management targets substantial margin expansion, aiming for adjusted EBITDA margins of at least 20% by 2030, with marketing spend expected to decrease.

Hims & Hers Health is aggressively expanding through new product launches, international markets, and strategic acquisitions, supporting a bullish outlook. HIMS targets $6.5 billion in 2030 revenue, leveraging a subscriber base with significant runway to reach a 10 million target. Management signals potential to exceed long-term targets, reinforced by a $250 million share buyback reflecting confidence in undervalued shares.

Hims & Hers is an asset-light platform. Subscriptions, cross-selling, and personalization drive rising ARPU, strong retention, and improving unit economics with structurally low CAC. Growth has normalized but remains ~50%+, driven by weight loss, Hers, diagnostics, and international expansion. Focusing on personalized plans lifts ARPU and retention, improving revenue quality. Margin volatility reflects investments, not pricing pressure. EBITDA margins remain healthy, free cash flow is positive, marketing efficiency is improving, and liquidity exceeds $1.1 billion.