Hims & Hers Health (HIMS) is an online multi-specialty telemedicine company that virtually connects consumers with licensed health care professionals. Since going public in 2021, the company has made headlines multiple times, producing highly volatile price trends that are certainly not for the faint of heart. We profiled the name in this column in July, when the stock was trading around $23.50, and it currently trades at $32.50. Due to its volatile nature, the stock didn’t rise in a straight line 50% from July – falling below $14 in September. Despite the volatility, we continue to hold the name and I hope to increase my position. Following September’s decline, the stock broke above the 3-year resistance zone at $25.50 and above a newly formed support zone, upside could double based on the long-term technical forecast of $65.00. This argument is complete as we hold above $25.50. The biggest source of headlines and volatility for this high-profile new-age company is their weight-loss drug, which competes with Eli Lilly and Novo Nordisk’s GLP-1 drug. According to the HIMS website: “Hims & Hers offers combination semaglutide injection, which contains the same active ingredients as Ozempic and Wegovy. These combination medications are not sold over the counter; instead, they require a licensed health care provider over the counter. Just recently, the FDA removed Eli Lilly’s GLP-1 from the shortage list, but Novo Nordisk’s GLP-1 remains on the shortage list. There’s some confusion among investors, but from the research we’ve done, weight loss drugs represent less than about 10% of revenue, so it’s not too significant, although the shortage classification may be removed from the FDA list. The stock is still performing quite well. This is likely due to the fact that the company has other revenue pipelines and opportunities that can drive future growth. HIMS continues to show significant relative strength, indicating that the market remains confident in the name’s tactical alpha. We hold a 1% allocation in the Growth (TAG) portfolio. I hope to increase the holding to 2% in the near future – Todd Gordon, founder of Inside Edge Capital, LLC disclosed: (Gordon at his wealth management. Inside Edge Capital, LLC owns HIMS in its growth portfolio.) All opinions expressed by CNBC Pro contributors are theirs alone and do not reflect their views, and are subject to our Terms and Conditions and Privacy Policy. Restrictions. This content is for informational purposes only and does not constitute financial, investment, tax or legal advice or a recommendation to purchase any security or other financial asset. The content is of a general nature and does not reflect any individual’s unique personal circumstances, which may not be appropriate. Your specific circumstances. Before making any financial decisions, you should strongly consider seeking advice from your own financial or investment advisor. Click here to view the full disclaimer.
Todd Gordon says chart shows this healthcare stock could eventually double | Real Time Headlines
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