Shares of telehealth company Hims & Hers Health experienced a significant rise, climbing 5.7% in the afternoon trading session following the announcement of new treatment options for perimenopause and menopause. The company is now offering personalized treatment plans and prescription medications, including estradiol and progesterone, available in various forms such as pills, patches, and creams. This expansion into women’s health marks a crucial development for Hims & Hers, which is aiming to surpass $1 billion in annual revenue by 2026.
This new addition of hormone-replacement therapies broadens Hims & Hers’ service offerings to its substantial subscriber base, reflecting the company’s commitment to enhance its product lines. In the past year, Hims & Hers has experienced considerable volatility, with 98 instances of stock movement exceeding 5%. While the recent surge indicates that the market views this news positively, it does not fundamentally alter the general perception of the company.
Just five days prior, the stock saw a decline of 6.5% after a report from Bank of America pointed out declining order trends and a downward revision of the fourth-quarter revenue forecast. The report indicated a 16% year-over-year decrease in orders for September, casting doubts on the company’s growth prospects heading into the fourth quarter. Consequently, BofA adjusted its fourth-quarter revenue forecast for Hims & Hers to $590 million, which is about 6.5% lower than the consensus estimate. The findings highlighted ongoing challenges such as slowing growth, intensified competition, and potential hurdles in converting customers.
Despite the ups and downs, Hims & Hers Health’s stock is up a remarkable 135% year-to-date. However, at a share price of $59.34, it remains 13.7% below its peak of $68.74 reached in February 2025. For investors, the long-term outlook has been favorable; a $1,000 investment in Hims & Hers stocks five years ago would now be valued at approximately $5,662.
The announcement of new treatment options not only enhances the company’s portfolio but also aligns with broader healthcare trends that advocate for comprehensive women’s health solutions. This move could pave the way for further growth opportunities and signify a commitment to addressing pivotal healthcare needs.