Hims & Hers Health (HIMS) is one of the market’s most hotly debated stocks. The telehealth platform is shaking up personalized healthcare, delivering affordable treatments for everything from hair loss to weight management. It has its die-hard fans and vocal critics—and after the stock slid following its latest Q2 report published last week on August 4th, the bears might seem to be winning the argument.
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Yes, revenue fell short of Wall Street’s sky-high expectations, and the booming obesity drug market faced some turbulence. But in my view, the market is missing the bigger picture. This was a stellar quarter—marked by explosive growth and strategic moves that scream long-term upside. And with the valuation still looking like a bargain, HIMS remains a cornerstone of my portfolio. I think now is a perfect time to buy the dip on HIMS stock, given the overshoot in bearish sentiment.
Why Wall Street Freaked Out
Wall Street can often be a drama queen, and HIMS felt the wrath post-earnings. The telehealth company reported revenue of $544.8 million, a solid 73% year-over-year jump, but it fell short of the $552 million analysts expected. The miss stung, especially after a stellar Q1 with 111% growth. It can be attributed mainly to regulatory headwinds in the compounding obesity drug market.
The FDA called off the shortage allowance for GLP-1 knockoffs in February 2025, forcing HIMS to pivot from mass-producing these cheaper alternatives. Add to that a busted deal with Novo Nordisk (NVO), which sent shares spiraling back in June, and you’ve got a recipe for investor jitters. Legal risks are also looming, with Novo Nordisk filing various lawsuits against telehealth players for pushing “personalized” compounded drugs.
Beyond the revenue miss, gross margins took a hit, slipping from Q1’s highs, and HIMS’ third-quarter guidance of $580 million at the midpoint felt lukewarm compared to Wall Street’s hopes. You can thus understand why investors got scared, troubled that HIMS’ heavy reliance on GLP-1s might clip its wings. However, let’s take a step back, as Wall Street’s short-term tantrum is likely missing the bigger picture here.
Growth That’s Still Red-Hot
Despite the noise, HIMS is charging forward like a freight train. Subscriber growth was quite impressive, with the company reaching 2.4 million users, up 31% from last year, demonstrating the platform’s sticky appeal, which offers tailored solutions for weight loss, dermatology, and more.
Notably, revenue grew 73% to $544.8 million, driven by booming demand for telehealth weight-loss services and personalized offerings. And the critical factor here is that the company is not just relying on obesity drugs. In fact, its dermatology segment is growing over 50% year-over-year, with 80% of that business now tied to proprietary, personalized SKUs that boosted retention by 20%.
HIMS also completed some key moves this quarter, including acquiring Zava, a U.K.-based telehealth player that should, in turn, set the stage for expansion into Germany, Ireland, and France. Looking ahead, the company is eyeing Canada in 2026, timed with the arrival of generic semaglutide, which could slash prices to $75-$100 from the current $200-$400 range.
Plus, HIMS is diving into longevity and preventive care, with at-home lab testing and compounding facilities to personalize treatments like never before. So even though the market believes that GLP1-related pressures present a notable risk, I see that HIMS is building a healthcare ecosystem that’s poised to keep revenue climbing.
Is HIMS a Good Stock to Buy?
There are 11 analysts offering price targets on HIMS stock via TipRanks, featuring a very mixed consensus. As I mentioned earlier, this is a highly polarizing stock. Evidently, the stock carries a Hold consensus rating based on three Buy, six Hold, and two Sell ratings over the past three months. HIMS’ average stock price target of $51.33 implies about 1% downside over the next twelve months, which also reflects Wall Street’s concerns about the telehealth innovator.
A Valuation That’s Too Good to Ignore
HIMS’ valuation is where things get juicy. The market’s hung up on the GLP-1 drama, but that’s just one piece of the puzzle. HIMS is trading at under 5x sales, which I believe is a dirt-cheap multiple for a company growing revenue at 73% and subscribers at 31%.
Sure, the P/E ratio’s sitting at 83x this year’s expected EPS, which might raise eyebrows. However, profitability is set to surge from here. Analysts are projecting 41% EPS growth next year alone, meaning that P/E will shrink fast as profits catch up.
Regulatory risks are still a big deal for HIMS. But make no mistake, as this company isn’t just hanging on to compounded drugs. They’re clearly building a fast-growing platform that covers weight loss, skincare, low testosterone, menopause care, and now longevity. The Zava acquisition and Canada expansion will only fuel that growth further.
HIMS’ Short-Term Noise Heralds Long-Term Opportunity
While Wall Street zeroed in on HIMS’ short-term hiccups, the company’s long-term story remains intact and compelling. With explosive subscriber growth and expanding product lines, HIMS is quietly building a diversified, future-ready healthcare platform.
The GLP-1 drama may have rattled the market, but I believe it’s just noise in a much bigger narrative. For those with patience and vision, HIMS offers a rare blend of innovation, scalability, and upside that’s too promising to ignore, especially after the post-earnings plunge.