Hims & Hers Health, Inc. (HIMS) Suffers a Larger Drop Than the General Market: Key Insights

In the latest close session, Hims & Hers Health, Inc. (HIMS) was down 7.33% at $23.15. This move lagged the S&P 500's daily loss of 1.36%. At the same time, the Dow lost 1.64%, and the tech-heavy Nasdaq lost 1.46%.

The stock of company has risen by 53.53% in the past month, leading the Medical sector's loss of 5.66% and the S&P 500's loss of 1.76%.

Market participants will be closely following the financial results of Hims & Hers Health, Inc. in its upcoming release. The company is expected to report EPS of $0.02, down 90% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $621.4 million, reflecting a 6.04% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.51 per share and revenue of $2.85 billion, which would represent changes of -3.77% and +21.2%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Hims & Hers Health, Inc. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 16.26% fall in the Zacks Consensus EPS estimate. Hims & Hers Health, Inc. currently has a Zacks Rank of #3 (Hold).

Looking at valuation, Hims & Hers Health, Inc. is presently trading at a Forward P/E ratio of 48.73. Its industry sports an average Forward P/E of 21.33, so one might conclude that Hims & Hers Health, Inc. is trading at a premium comparatively.

Also, we should mention that HIMS has a PEG ratio of 2.8. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Medical Info Systems was holding an average PEG ratio of 1.2 at yesterday's closing price.

The Medical Info Systems industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 36% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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