Hims & Hers Health, Inc. (HIMS) Registers a Bigger Fall Than the Market: Important Facts to Note

In the latest close session, Hims & Hers Health, Inc. (HIMS) was down 3.1% at $18.78. The stock fell short of the S&P 500, which registered a loss of 0.4% for the day. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, lost 0.73%.

The company's shares have seen an increase of 33.47% over the last month, surpassing the Medical sector's loss of 10.07% and the S&P 500's loss of 7.34%.

Market participants will be closely following the financial results of Hims & Hers Health, Inc. in its upcoming release. The company's earnings per share (EPS) are projected to be $0.02, reflecting a 90% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $621.4 million, showing a 6.04% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.48 per share and a revenue of $2.86 billion, representing changes of -9.43% and +21.88%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Hims & Hers Health, Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 8.44% lower. As of now, Hims & Hers Health, Inc. holds a Zacks Rank of #3 (Hold).

From a valuation perspective, Hims & Hers Health, Inc. is currently exchanging hands at a Forward P/E ratio of 40.62. Its industry sports an average Forward P/E of 19.63, so one might conclude that Hims & Hers Health, Inc. is trading at a premium comparatively.

It's also important to note that HIMS currently trades at a PEG ratio of 2.34. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Medical Info Systems industry held an average PEG ratio of 1.11.

The Medical Info Systems industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 38% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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Hims & Hers Health, Inc. (HIMS): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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