Hims & Hers Health (NYSE:HIMS) rallies 19% this week, taking one-year gains to 161%

The last three months have been tough on Hims & Hers Health, Inc. (NYSE:HIMS) shareholders, who have seen the share price decline a rather worrying 33%. On the other hand, over the last twelve months the stock has delivered rather impressive returns. Indeed, the share price is up an impressive 161% in that time. So it is important to view the recent reduction in price through that lense. Investors should be wondering whether the business itself has the fundamental value required to continue to drive gains.

The past week has proven to be lucrative for Hims & Hers Health investors, so let's see if fundamentals drove the company's one-year performance.

See our latest analysis for Hims & Hers Health

Given that Hims & Hers Health only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. It would be hard to believe in a more profitable future without growing revenues.

Over the last twelve months, Hims & Hers Health's revenue grew by 50%. That's stonking growth even when compared to other loss-making stocks. Meanwhile, the market has paid attention, sending the share price soaring 161% in response. It's great to see strong revenue growth, but the question is whether it can be sustained. The strong share price rise indicates optimism, so there may be a better opportunity for buyers as the hype fades a bit.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. If you are thinking of buying or selling Hims & Hers Health stock, you should check out this free report showing analyst profit forecasts.

A Different Perspective

It's nice to see that Hims & Hers Health shareholders have received a total shareholder return of 161% over the last year. That's better than the annualised return of 11% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand Hims & Hers Health better, we need to consider many other factors. Take risks, for example - Hims & Hers Health has 1 warning sign we think you should be aware of.

Hims & Hers Health is not the only stock insiders are buying. So take a peek at this free list of small cap companies at attractive valuations which insiders have been buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.