Jim Cramer on Hinge Health: “I Told You it Was Worth Buying”

Hinge Health, Inc. (NYSE:HNGE) is one of the stocks Jim Cramer shared insights on. Cramer mentioned the stock while discussing this year’s IPOs and commented:

“We’ve had a lot of phenomenal IPOs this year, stocks that have exploded higher, stocks like Hinge Health, which is a digital physical therapy platform. You get it via your phone rather than in person. Not long ago, after this one came public in May, I told you it was worth buying. At the time, the stock was trading at 44. Now, it’s at 55 and change, in large part because Hinge reported a stellar first quarter right out of the gate, a little over a month ago.”

Photo by Yiorgos Ntrahas on Unsplash

Hinge Health, Inc. (NYSE:HNGE) develops digital health software focused on musculoskeletal care, covering injury recovery, chronic pain management, and post-surgical rehabilitation. Cramer suggested buying the stock in a July episode, as he said:

“… After the quiet period ended mid-June, and Hinge received universally positive coverage from the analysts, the stock then took off again, climbing as high as $52 and change on the last day of June before pulling back to the mid-40s as of today. So I like that nice pullback from the top…

… So the story sounds pretty good, right? Numbers are great, and now the only thing left to determine is how much should we pay for the stock. The 13 analysts that have stuck Buy ratings on Hinge have assigned price targets ranging from $41 to $52… So on an absolute basis, the stock seems a little pricey, trading 87 times this year’s numbers, 60 times next year’s numbers.

However, I don’t think that’s a crazy multiple to pay for a stock in this stage of its development now, when it’s got such rapid growth. With Hinge’s earnings per share expected to grow by 45% next year, the stock has a price to earnings to growth ratio of 1.33 based on these numbers, which is actually far from expensive. In fact, using 2026 numbers, the S&P 500 currently has a 1.5 price to earnings to growth ratio. You could argue that, at least on this metric, Hinge is trading at a discount to the market.

Bottom line: I think Hinge Health looks like another good option for investors like MNTN, Mountain. But unlike the high-flying CoreWeave or the Circle Internet, you know what? You get my blessing right now, right here to buy tomorrow morning. Yeah, I feel that good about it. As we peruse these mid-sized IPOs from the past several weeks, we’re finding some real nice up-and-coming companies with stocks that haven’t run too much, and I think some of them, like Hinge and Mountain, represent really good options for growth-oriented investors like you.”

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