Despite the announcement of Hims & Hers’ venture into women’s health, the company’s stock dropped nearly 4.9% by the close of trading on Tuesday. Analysts note that although the new offering is expected to contribute positively to the company’s long-term growth, investor sentiment has remained cautious in the short term.
Historically, Hims & Hers has seen its revenue grow through a series of innovative product launches and service expansions. The firm currently holds a market capitalisation of $11.25 billion, with an earnings yield of 1.2%, outperforming the industry’s negative yield. However, its most recent quarterly earnings report revealed a negative surprise of 5.6%.
According to research by Grand View Research, the global menopause market was valued at $17.79 billion in 2024 and is expected to reach $24.35 billion by 2030, expanding at a compound annual growth rate (CAGR) of around 5.4%. This growth is being driven by demographic changes and increasing awareness of the health and wellness needs of ageing women. Against this backdrop, analysts expect Hims & Hers’ new launch to strengthen its presence in this rapidly growing market segment.
Hims & Hers has also been broadening its focus beyond women’s health. Last month, they unveiled a new category in men’s health, providing innovative and affordable treatment plans for low testosterone. This followed a strong second-quarter performance in August, during which the company reported higher revenues and profits, largely driven by its online revenue channel. Growth in subscriber numbers and average monthly online revenue per subscriber also contributed to these gains.
Despite recent stock volatility, Hims & Hers’ shares have surged 117.7% over the past year, far outperforming the broader industry’s 24.9% increase and the S&P 500’s 17.4% rise.
Currently, Hims & Hers holds a Zacks Rank #3 (Hold), indicating a neutral outlook from analysts. In comparison, several other medical firms hold stronger rankings. Boston Scientific Corporation (BSX), for example, carries a Zacks Rank #2 (Buy) and has an estimated long-term growth rate of 14%. The company’s earnings have exceeded estimates in each of the past four quarters, delivering an average surprise of 8.1%. Shares of Boston Scientific have gained 14.2% over the past year, outperforming the industry’s 0.4% decline.
While Hims & Hers’ latest product launch initially failed to excite investors, analysts suggest the move could pay off over time as the company strengthens its leadership position in digital health and expands into high-growth areas such as menopause care and AI-supported personalised treatment plans.
