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- Hims & Hers overdelivered again, and the stock looks unjustifiably cheap
Hims & Hers overdelivered again, and the stock looks unjustifiably cheap
George Babis
May 08, 2024
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The market has been rough lately, and volatility has surged even for traditionally stable mega-cap stocks. For instance, Starbucks ($SBUX) experienced its biggest drop since 2000 last week due to disappointing earnings results. When a mega-cap stock exhibits such volatility, holding small and mid-cap stocks that can surge or plummet without a clear reason requires courage. Hims & Hers Health is a good example.
The telehealth company's shares fell over 30% in the past 40 days with no apparent cause. Market volatility and an analyst downgrade may have contributed to the decline. However, on Monday, the company reported Q1 earnings that exceeded analyst estimates across the board, sending its stock soaring.
The 25%+ dip from recent highs, combined with stellar Q1 earnings results and guidance, offers an attractive entry point for investors. HIMS remains an undervalued stock, but this could change if the company continues to exceed expectations. Let’s take a closer look at one of the most promising telehealth names on the market.