10 Best Skincare Stocks to Buy According to Hedge Funds

6. Hims & Hers Health Inc. (NYSE:HIMS)

Number of Hedge Fund Investors: 38

Revenue Growth Rate (year-over-year): 69.32%

Hims & Hers Health, Inc. (NYSE:HIMS) is a multi-specialty telehealth platform that connects customers with certified healthcare providers, allowing them to receive high-quality medical care for a variety of conditions related to mental health, sexual health, dermatology, haircare, and more.

In 2024, Hims & Hers Health, Inc. (NYSE:HIMS) had historic sales growth, with Q4 revenue of $481 million and full-year revenue of $1.5 billion, which represents 95% and 69% year-over-year increases, respectively. Over 55% of users subscribed to at least one personalized solution, and the total number of members surpassed 2.2 million, up 45% from the previous year. Growth was driven by the expansion of tailored treatments; women’s dermatology subscribers more than doubled, and men’s dermatology subscribers jumped more than 55% annually. Furthermore, the company reported $26 million in net profits for the fourth quarter and $126 million for the entire year, marking its first full year of GAAP profitability.

Hims & Hers Health, Inc. (NYSE:HIMS) also showed strong cash flow generation, generating around $60 million in free cash flow in the fourth quarter and about $200 million for the year. The company strengthened its position in personalized healthcare services by completing acquisitions of a peptide facility and whole-body lab testing facilities to further improve personalization and innovation.

Its non-linear development trajectory is further proven by two recent acquisitions. The purchase of a California peptide lab places Hims & Hers Health, Inc. (NYSE:HIMS) at the vanguard of metabolic optimization, cognitive performance, and anti-aging therapies, while the at-home full-body testing business offers avenues for hormone therapy, precision medicine, and more comprehensive preventative healthcare. These calculated actions support the firm’s goal of adding new verticals to its current infrastructure at a little expense to generate enormous long-term value.