Jun. 27, 2025 at 10:02 AM ET6 min read

Is It Too Late to Buy Hims & Hers Stock?

Tim BohenAvatar
Written by Tim Bohen
Reviewed by Ben Sturgill Fact-checked by Ellis Hobbs

Hims & Hers Health Inc.’s stocks have been trading up by 9.51 percent, driven by a surge in investor confidence.

Highlights from Recent Developments

  • The decision to acquire ZAVA, a digital health platform in Europe, marks a significant move by Hims & Hers. This acquisition aims to upscale their presence in the UK, Germany, France, and Ireland.
  • Hims & Hers enjoyed a nearly 2% uptick in premarket trading hours, attributed to positive sentiments surrounding this strategic expansion.

  • Amid a mix of market movements, the company’s shares were up by 0.9% amidst its expansion news into European markets.

Candlestick Chart

Live Update At 10:02:21 EST: On Friday, June 27, 2025 Hims & Hers Health Inc. stock [NYSE: HIMS] is trending up by 9.51%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Financial Overview of Hims & Hers Health Inc.

As Tim Bohen, lead trainer with StocksToTrade says, “Success in trading is more about cutting losses quickly than finding winners.” In the world of trading, understanding the significance of managing trades is key. It’s not just about the stocks that increase in value, but more importantly about knowing when to exit a losing position to protect capital. Adopting a disciplined approach can make the difference between overall success and failure. Traders need to be vigilant and decisive, focusing on minimizing losses to ensure long-term profitability.

In recent times, Hims & Hers Health Inc. has shown resilience in a volatile market. The company has made ambitious strides, particularly with its recent acquisition. Looking at their earnings report, they reported a total revenue of $1.48B, a notable achievement that reflects their strategic growth. The revenue growth over the past three years has been impressive, registering at 77.17%, with a stunning 126.3% increase over the last five years. This is a testament to the company’s aggressive expansion strategy.

The company’s profitability metrics indicate some areas that could be improved. Their ebit margin is relatively low at 3.7%, while its profit margin sits at 9.21%. Despite this, the gross margin remains robust at 77%, underscoring the efficiency in the operational aspects. It’s also noteworthy that the price-to-earnings ratio currently stands at 68.06, suggesting that the stock might be or currently highly valued.

Assessing cash flow, they have demonstrated fair capability in managing cash effectively, with a free cash flow of $50M. Moreover, the company exhibits strong financial health with a total debt-to-equity ratio of 0.12 and a current ratio of 1.6, indicating robust liquidity.

More Breaking News

With its move into the European market, this initiative is likely to bolster revenue, covering some of the profitability concerns in the upcoming quarters. Their strategic investment in ZAVA aims not only at leveraging infrastructure for branded service launches but also expects to be accretive by 2026.

Expansion and Its Impact

Hims & Hers’ acquisition of ZAVA marks a bold expansion into Europe. Historically, expansions come with risks, yet the potential benefits of this move are numerous too. The acquisition will enable Hims & Hers to cater to a broader audience, tapping into markets that demand personalized healthcare solutions. Such expansion also provides a buffer against possible stagnation in existing US markets.

European healthcare markets such as the UK’s and Germany’s are among the most lucrative. Their addition to Hims & Hers’ footprint could significantly boost its revenue streams. Market experts often view incoming expansions as vote-of-confidence. Usually, it could mean that early investments into areas with high potential for a return have been soundly thought out.

However, ZAVA will present its challenges too. Regulatory waters in Europe are often tricky, being different in each nation. Hims & Hers must show an aptitude for adapting to these various rules to ensure success. Experts agree that the learning curve might be steep, but the rewards could be substantial.

Conclusion and Market Predictions

Hims & Hers Health Inc. is traversing a path familiar to many striving companies – the quest for expansion and dominance. Its newly announced European expansion can provide a substantial growth catalyst, dependent heavily on the successful integration of ZAVA’s assets into its existing lines of service. With shares gaining modestly, market analysts might be inclined to anticipate a decent upside in the upcoming years.

Hims & Hers is presently buoyed by a combination of strategic initiatives and practical efficiencies in various operations. With its strong current financial base and promising revenue avenues, Hims & Hers’ stock may hold appeal for those looking to trade in burgeoning healthcare companies. Traders should take heed, though, of the inherent risks tied with rapid expansion. As Tim Bohen, lead trainer with StocksToTrade says, “Success in trading is more about cutting losses quickly than finding winners.” This insight emphasizes the importance of strategic decision-making processes for those involved.

With thoughtful adaptation and a strong outreach plan, the company is expected to maintain upward momentum. However, given the mixed sentiments prevailing among analysts, potential traders should consider their risk appetites. Indeed, the question on many lips is: ‘Is this the right time to buy Hims & Hers?’ The answer likely depends on how optimistic one is about the company’s ability to capitalize on its recent bold moves.

This is stock news, not investment advice. StocksToTrade News delivers real-time stock market updates tailored to highlight the key catalysts driving short-term price movements. Our coverage is designed for active traders and investors who thrive in fast-moving markets, with a focus on volatile sectors like penny stocks, AI stocks, Robinhood stocks and other momentum plays. From earnings reports and FDA approvals to mergers, new contracts, and unusual trading volume, we break down the events that can spark significant price action.

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