We recently compiled a list of the 5 Stocks That Started The Year On A High. In this article, we are going to take a look at where Hims & Hers Health Inc. (NYSE:HIMS) stands against the other stocks.
Anyone who’s looked at the market in the last couple of weeks will know that there were some events that shook investors. The revelation of DeepSeek AI’s capabilities resulted in record amounts wiped out from the valuations of many chip makers. Analysts have since then questioned the claims made by the Chinese, but most of the stocks haven’t been able to recover.
While geo-political issues looked to be dying down, Donald Trump initiated a tariff war by slapping tariffs on China, Mexico, and Canada. As a result, many stocks continue to tumble.
Despite all the above, the stock market boasted the best first 9 days of trading in a new presidential term since Barack Obama’s term started in 2013. This is incredible and continues to show the strength of the US economy.
We decided to come up with a list of stocks that helped the market post these amazing returns. To come up with our list of 5 stocks that started the year on a high, we only considered stocks with a market cap of at least $3 billion that outperformed the market in the month of January.
A nurse in a telehealth platform talking with a patient on video call for consultation.
Hims & Hers Health Inc. (NYSE:HIMS)
Hims & Hers Health Inc. is a telehealth company that links consumers to licensed medical practitioners. It offers a range of curated non-prescription and prescription health and wellness services and products to purchase through its mobile app and websites. The company’s stock surged 48% in January due to its compounded obesity drug’s impressive sales.
By selling its weight loss drug at a discounted price, HIMS outpaced both of its competitor companies Eli Lilly (LLY) and Novo Nordisk (NVO). Even though the stock was among the best performers in January, the future outlook remains clouded. The company’s share performance might experience a downturn if semaglutide is removed from FDA’s shortage list in the coming months.
Daniel Grosslight, an analyst at Citi, further highlighted the risks associated with stock by stating that the company’s weight loss business would be significantly constrained due to limited compounding options. At the same time, he is cautiously optimistic about raising the target price from $24 to $25. Investors must consider the risks associated with this stock before making any decision, as the stock is volatile owing to its competitors.
Overall HIMS ranks 5th on our list of the stocks that started the year on a high. While we acknowledge the potential of HIMS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as HIMS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
