Hims & Hers Health (HIMS) Surged on Weight Loss Offering Advertisement Campaign

Scout Investments, Inc., an affiliate of Carillon Tower Advisers, released the “Carillon Scout Mid Cap Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, the Russell Midcap Index posted negative returns. Significant policy uncertainty, signaled by aggressive tariff announcements, reversed the positive sentiment prevailing in the domestic market at the start of the year, turning it negative. The first-quarter macroeconomic environment showed signs of slowdown but not recession. The economy seems okay, but downside risks are rising. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Carillon Scout Mid Cap Fund highlighted stocks such as Hims & Hers Health, Inc. (NYSE:HIMS). Hims & Hers Health, Inc. (NYSE:HIMS) offers a telehealth platform that connects consumers to licensed healthcare professionals. The one-month return of Hims & Hers Health, Inc. (NYSE:HIMS) was -21.33%, and its shares gained 81.26% of their value over the last 52 weeks. On June 23, 2025, Hims & Hers Health, Inc. (NYSE:HIMS) stock closed at $41.98 per share, with a market capitalization of $9.396 billion.

Carillon Scout Mid Cap Fund stated the following regarding Hims & Hers Health, Inc. (NYSE:HIMS) in its Q1 2025 investor letter:

“Hims & Hers Health, Inc. (NYSE:HIMS) is an online healthcare provider, allowing patients to access a variety of healthcare professionals through its telehealth platform. The stock appreciated around the release of a major television advertising campaign highlighting its weight-loss offering, which includes popular, and potentially difficult to acquire, GLP-1 drugs. While we continue to like the opportunity for Hims & Hers to expand medical care in a consumer-friendly manner, the U.S. Food and Drug Administration changed certain rules regarding the methods that Hims & Hers was using to supply its weight-loss products, and it may take time for the company to adjust to the new environment.”

Why Hims & Hers Health, Inc. (HIMS) Surged On Friday

A nurse in a telehealth platform talking with a patient on video call for consultation.

Hims & Hers Health, Inc. (NYSE:HIMS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 41 hedge fund portfolios held Hims & Hers Health, Inc. (NYSE:HIMS) at the end of the first quarter, which was 38 in the previous quarter. Hims & Hers Health, Inc.’s (NYSE:HIMS) first quarter revenue increased 111% year-over-year to $586 million. While we acknowledge the potential of Hims & Hers Health, Inc. (NYSE:HIMS) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Hims & Hers Health, Inc. (NYSE:HIMS) and shared Renaissance Investment Management Small Cap Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of HIMS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.