Hims & Hers Health Shares Surge Following Novo Nordisk Partnership
Hims & Hers Health, Inc. (HIMS) experienced a remarkable 23% increase in its share price during the last trading session, closing at $35.04. This surge was fueled by significant trading volume, with a much higher number of shares changing hands than usual. In contrast, the stock had seen a 3.6% decline over the previous four weeks.
Strategic Partnership with Novo Nordisk
The notable rise in Hims & Hers Health’s stock can be linked to the company’s announcement of a partnership to sell Novo Nordisk’s weight-loss drug, Wegovy, on its telehealth platform. This collaboration is expected to facilitate direct access to NovoCare Pharmacy for U.S. customers through Hims & Hers Health’s online services. Patients may combine all dose strengths of Wegovy with a Hims & Hers membership at a monthly cost of $599.
Upcoming Earnings Report
The company is anticipated to release quarterly earnings of $0.14 per share, reflecting a year-over-year increase of 180%. Revenue projections for the quarter stand at $537.85 million, which is a 93.4% rise compared to the same period last year.
While earnings and revenue growth projections provide insights into a company’s potential strength, research indicates that trends in earnings estimate revisions significantly correlate with short-term stock price movements. For Hims & Hers Health, the consensus EPS estimate for the upcoming quarter has been revised upward by 21.3% over the last month. Typically, an upward trend in earnings estimates can lead to stock price appreciation. Therefore, investors should monitor HIMS closely to see if this recent upswing translates into longer-term growth.
Market Position and Competitors
The stock currently holds a Zacks Rank #2 (Buy). Hims & Hers Health is situated within the Zacks Medical Info Systems industry. In comparison, Health Catalyst (HCAT), another firm in this industry, closed the recent trading session at $4.07, up by 0.3%. However, HCAT’s performance has been less favorable, showing a -10.4% return over the last month.
For Health Catalyst, the consensus EPS estimate for the forthcoming report has remained flat at $0.01, reflecting an 80% decline compared to the previous year. Presently, Health Catalyst holds a Zacks Rank of #3 (Hold).
