Hims & Hers Health (NYSE:HIMS) Sees 95% Price Jump Despite Sector Concerns Over Medicare Scrutiny

Hims & Hers Health (NYSE:HIMS) saw a remarkable share price increase of 95% over the last quarter, amid a broader market context that witnessed significant declines. Unlike the plunge in major indexes during February, particularly the 2% fall in the Nasdaq Composite, HIMS's performance was buoyed by positive company developments and possibly broader consumer health trends. While UnitedHealth and other insurers faced scrutiny from the Department of Justice regarding Medicare billing practices, possibly affecting sector sentiment, HIMS appeared resilient. Although broader economic indicators, such as consumer confidence and existing home sales figures, were shaky, this didn't seem to deter HIMS's upward trajectory. This suggests that the company's movements were more insulated from broader market fluctuations, allowing it almost to double its market value, showcasing strong investor interest and perhaps a growing confidence in its business model and market position.

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Over the past three years, Hims & Hers Health has experienced a very large total return of 829.81%, showcasing its robust performance relative to the US Healthcare industry, which saw a 11.4% decline over the past year. This impressive growth can be attributed to a series of tactical moves and achievements. Noteworthy is the company's profitability milestone reached recently, combined with a significant revenue leap, as seen in Q3 2024, with sales of US$401.56 million and a net income of US$75.59 million. Additionally, the introduction of new product lines like meal replacement bars and strategic expansions, such as partnerships enhancing healthcare service access, have bolstered its market relevance.

Further strengthening investor confidence, Hims & Hers executed a share buyback program, acquiring nearly 1.9 million shares for approximately US$30.03 million. Its addition to several S&P indices in October 2024 also underscores its growing market stature. These elements collectively highlight the factors contributing to its substantial long-term total return.

• Discover whether Hims & Hers Health is fairly priced, undervalued, or overvalued in our comprehensive valuation breakdown.
• Assess the potential risks impacting Hims & Hers Health's growth trajectory—explore our risk evaluation report.
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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.

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