Why Hims & Hers Is a Buy Below $35 After Its 16% Pullback
There is always a challenging moment in every investor’s favorite stock and portfolio, especially when said businesses are still going through what’s known as a “growth spurt,” in which lots of things can go extremely well, but also unexpectedly wrong.
In today’s market, filled with volatility and uncertainty on a macro level, it is as important as ever to remember the initial thesis.
This is where fundamentals come into play the most for investors to justify holding the stocks that have made them successful in the first place, and not panic-sell due to emotions that will likely subside in a few months or even less.
One perfect example of such a situation is found in shares of Hims & Hers Health Inc. (NYSE: HIMS), a stock that has generated significant wealth in a short period but has recently given some back.
What matters most is what made the stock rally as much as it did up to mid-June 2025 in the first place, so that investors can cross-check whether those same factors still stand in today’s environment, making it a potential holder into the future if not an outright dip-buying opportunity after a recent fall from its 52-week high levels.
As investors will find, this is easier said than done for Hims & Hers stock.
Are Skies Clear for Hims & Hers Again?
Not exactly. As exciting as it is, this stock has fallen by as much as 16% over the past month alone, which is not something many investors feel confident about when holding so much red in their portfolio. Those who were early enough to get into this name don’t have to worry about this, though, unless recent events have an adverse effect on the company.
Initially, Hims & Hers rallied by over 100% starting in April 2025 on news that Novo Nordisk would adopt them as one of their weight loss drug providers and carriers. This partnership opened the floodgates for further institutional capital to flow into the stock in its support.
However, only a month after this announcement, Novo Nordisk decided to pull back the partnership, causing the stock to fall as much as it did. Now, there are still plenty of reasons Hims & Hers stock was a buy before the Novo Nordisk announcement, and those reasons haven’t changed at all.
In fact, it can still be argued (based on the stock’s chart) that any price below the $35 per share level is still fair game for those looking to invest in one of the fastest-growing companies in the medical sector. That being said, it is now time to focus on what matters, the fundamental story behind Hims & Hers.
A Business Primed for Breakouts
As it turns out, Hims & Hers is not only in the medical field, but also combines the technology sector's growth and innovation into a space in dire need of change. This innovative and affordable approach to delivering healthcare solutions to customers is at the core of Hims & Hers stock’s growth trajectory, which remains intact even after the announcement.
Novo Nordisk's market exit simply reflects expectations that were never evident in the company's financial data or forecasts, so ultimately, there's little cause for concern.
Hims & Hers stock had reached a high of around $70 per share in February 2025, without Novo Nordisk’s help. This suggests that it may retest these highs and possibly break new ones, even as the partnership fell apart, which should matter most to investors.
One of the most important aspects of Hims & Hers is its market share positioning and subscription business model. This model offers stable and predictable cash flows to investors, a commodity in volatile times for the S&P 500 index. What drives this subscription and financial growth is also worth noting.
As of the latest financial quarter results, released in May 2025, Hims & Hers reported revenue figures of up to $586 million, representing a massive 111% increase on an annual basis. Subscribers driving this revenue growth also reached an all-time high of 2.4 million for a 38% annualized growth rate.
Most importantly, the business's free cash flow was reported at $50.1 million for the quarter, a nearly fivefold increase from the $11.9 million reported for the same quarter the previous year.
This massive financial growth appears to give Novo Nordisk little credit, and neither should the stock’s discount moving forward.
As it now trades at 66% of its 52-week high, Hims & Hers stock presents a very attractive turnaround play for those bold enough to look at the cold, hard facts rather than the noise circulating in the news cycle.
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