Hims Stock: A Millionaire-Maker in the Making or Just a Passing Trend? 5 Key Insights to Know

Hims & Hers Health (NYSE: HIMS Stock) is a direct-to-consumer telehealth platform, and stockholders have experienced the intense run-up of shares, which have gained almost 20 times their worth since the low in 2022. Indeed, from just one year behind, this stock has soared a whopping 490 percent, turning itself into one of those rare lucky stocks in the eyes of early investors. They say that it must have been life-changing profits if one managed to invest in Hims & Hers in early 2021.

Is this perhaps an aberration, or could there be sustainable growth that lies beyond this skyward trajectory, potentially making the stock a millionaire-maker in the long run? The growth path of the company has a bit of its own to say, and the stock, undeniably, contains a few more surprises yet.

Hims & Hers: Not Only GLP-1 Drugs

Hims & Hers is a telehealth brand through which users can consult a licensed health practitioner through its website or smartphone app. If necessary, the practitioner can prescribe medication or recommend various wellness products offered by Hims & Hers. The company’s forte is in different healthcare offerings: skincare, mental health, and sexual health. However, the word on the street regards the company’s compounded GLP-1 agonist drugs for weight management. The mention of these weight-management drugs is, of course, very popular due to the shortage of branded versions like Novo Nordisk’s semaglutide (Ozempic/Wegovy), hence affording room for companies like Hims & Hers to be market players by offering their compounded version.

Even if the GLP-1 agonist drugs became the rage of the media, the truth is that they account for only a small portion of Hims & Hers’ business. Even without their contribution, the company had an impressive 40 percent growth year on year in Q3 of 2024, showcasing the fact that the company was doing well in diverse categories. Moreover, Hims & Hers has diversified its product offering into new nutrition products in November of 2024, with suggestions that it should soon introduce hormone treatments.

Financial Performance And Growth Potential

One of the major drivers enhancing the stock’s rise is the spectacular revenue growth rate at Hims & Hers. The company, according to GAAP, is also profitable, consolidating its strong finances further. In all of this, Hims & Hers is priced relatively cheaply, with a forward price-to-sales ratio just over five for 2025—a far cry from the frothy multiples seen elsewhere for similar high-flying techs like Palantir Technologies trading at over fifty-five times next year’s revenue estimates.

Given the significant ongoing revenue growth and profits for Hims & Hers, the inference is that nevertheless still holds for the future. Additionally, with increased product offerings, a growing subscriber base (two million subscribers as of Q3 2024), and moderate valuations vis-a-vis its peers, an argument could be made for significant upside potential, HIMS.

Key Risks: Competitors and Regulation

Despite the fact that Hims & Hers is seeing rapid growth, there are some risks present. The arrival of competitors has been spurred on by Hims & Hers’ success, most notably the popularity of compounded GLP-1 agonists. Among the would-be disruptors is Amazon, who has long-standing interest in consumer healthcare. Even if the Amazon platform is not proving much of a competitive threat now, the perception would be that any company with such resources as Amazon will be a huge competitor in the days to come.

Appropriately, the continued dependency on compound GLP-1 agonists can indeed pose risks for Hims & Hers. Government regulation could tighten around compounded drugs and their sales, seriously affecting the firm once the shortage for traditional versions eases up. To this effect, Hims & Hers must diversify and grow beyond the area of GLP-1 agonists to mitigate this threat.

So The Smart Investment Plan on Hims & Hers

So, will this be a potential millionaire-maker? Yes, with caveats. There is certainly a scenario in which Hims & Hers has a huge potential trajectory into a health care giant with millions of consumers, capable of providing significant gains to investors down the line. Nevertheless, stocks never guarantee anything. Indeed the stock is still decent for only that degree of revenue growth mentioned, but caution is still warranted considering the stock’s drastic rise in such short order.

Wise DCA-ing would be an option for anyone intending to jump in at Hims & Hers, spreading buying activity over time instead of going all in at one shot. This procedure helps lessen the risk of losing on a stock already way up. Investors should keep a watchful eye on the company and assess whether or not its growth strategy beyond GLP-1 agonists might already be in place and how directly competitors interact with that strategy, now including Amazon.

The Bottom Line: Your Second Chance at a Potential Goldmine?

If there has ever been a time when you felt like you missed the boat of successful stocks like Nvidia, Apple, or Netflix, you may be wondering whether you have just missed another massive upside potential stock in Hims & Hers. But here is the thing: there are indeed some rare instances that might signal that another stock has even more room to grow. Our expert analysts are now placing a “Double Down” stock rating on firms they feel are about to pop, including Hims & Hers.

Life-changing returns might be yours if you do not miss your second chance to invest. After all, numbers don’t lie: an investment of $1,000 in Nvidia back in 2009 today would be worth over $360,000. Should Hims & Hers continue down its given path, it will be well on its way to becoming the next big investment in your portfolio.

So hurry up and take action because there may not be another opportunity available after this one.

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