Is HIMS a good stock to buy? We came across a bullish thesis on Hims & Hers Health, Inc. on TopSecretStocks’s Substack by Simon. In this article, we will summarize the bulls’ thesis on HIMS. Hims & Hers Health, Inc.’s share was trading at $15.88 as of March 5th. HIMS’s trailing and forward P/E were 32.25 and 34.97 respectively according to Yahoo Finance.
Hims & Hers Health, Inc. (HIMS) is emerging as a high-growth digital health platform, demonstrating strong demand across its expanding consumer base. Revenue surged 49% year-over-year to $599 million, driven by a growing subscriber count of 2.5 million and an average revenue per user of $80. While top-line momentum is undeniable, the company is currently experiencing margin compression, with gross margins declining to 74% and operating margins narrowing to just 2%. This decline is not a sign of weakness but reflects HIMS’s aggressive reinvestment strategy.
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The company is pivoting from its legacy telehealth and wellness offerings into more complex “hard health” categories, including cancer care, longevity treatments, and at-home lab testing, supported by strategic acquisitions like YourBio and Trybe Labs. Simultaneously, HIMS is executing a major geographic expansion across Europe and Canada, positioning the company for long-term scale. The market has penalized the stock for short-term margin pressure, but these investments are building a deeper medical infrastructure that could unlock substantial future profitability.
HIMS’s strategy is designed to create a more resilient, vertically integrated health ecosystem, combining strong subscriber growth, higher-value services, and international expansion. If successful, this transformation could drive both revenue acceleration and margin expansion over the medium term, making the stock an attractive growth opportunity for investors willing to look beyond near-term profitability. With the foundation for a broader and more medically comprehensive platform being laid today, HIMS has the potential to redefine digital health and capture a significantly larger share of the global healthcare market.
Previously, we covered a bullish thesis on Hims & Hers Health, Inc. (HIMS) by Oliver | MMMT Wealth in May 2025, which highlighted the company’s rapid revenue growth, rising subscribers, strong free cash flow, and expansion in personalized health solutions. HIMS’s stock price has depreciated by approximately 69.66% since our coverage due to short-term margin pressures. Simon shares a similar view but emphasizes margin compression from reinvestment into hard health categories and international expansion, building a scalable, vertically integrated platform.
Hims & Hers Health, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 39 hedge fund portfolios held HIMS at the end of the fourth quarter which was 35 in the previous quarter. While we acknowledge the risk and potential of HIMS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HIMS and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
