We recently published a list of Why These 15 Defensive Stocks Are Surging In 2025. In this article, we are going to take a look at where Hims & Hers Health Inc (NYSE:HIMS) stands against other defensive stocks that are surging in 2025.
Defensive stocks are surging as investors have been shifting their focus. Growth stocks dominated the past two years. Now, slower economic signals and rising risks are changing the landscape due to market uncertainty.
Defensive stocks offer much more stability and tend to perform well even in tough times. People still need electricity, medicine, and food. That reliability draws investors when uncertainty grows.
Many are rotating into these stocks for safety. The surge suggests a broader trend. It could mark a turning point after years of growth-led rallies., so it’s worth looking into the defensive stocks that stand out right now.
Methodology
For this article, I screened the best-performing defensive stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A nurse in a telehealth platform talking with a patient on video call for consultation.
Hims & Hers Health Inc (NYSE:HIMS)
Number of Hedge Fund Holders In Q4 2024: 38
Hims & Hers Health Inc (NYSE:HIMS) operates a telehealth platform that connects consumers to licensed healthcare professionals for personalized medical care and wellness products.
The stock is up significantly so far in 2025, as the company reported strong financial results for 2024. Revenue reached $1.5 billion, up 69% from the previous year. Net income hit $126 million, and subscribers grew to 2.2 million, a 45% increase.
The company’s expansion into high-demand areas like weight loss has fueled excitement. It offers compounded GLP-1 medications, which are popular for obesity management. These drugs have drawn attention amid shortages of branded versions. Hims & Hers stepped in to meet this need. The weight loss segment has become a key growth driver.
Plus, 2025 guidance has boosted confidence. It projects revenue between $2.3 billion and $2.4 billion. Adjusted EBITDA is expected to range from $270 million to $320 million. These forecasts signal continued momentum. Analysts and investors see a clear path to further gains.
The consensus price target of $37.31 implies 18.6% upside.
HIMS stock is up 30.23% year-to-date.
Overall, HIMS ranks 4th on our list of defensive stocks that are surging in 2025. 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 time frame. If you are looking for an AI stock that is more promising than 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 is originally published at Insider Monkey.
