Why Hims & Hers Health Inc. (HIMS) Went Up On Wednesday?

We recently published a list of Pulse of the Market: Wednesday’s 10 Top Performers. In this article, we are going to take a look at where Hims & Hers Health Inc. (NYSE:HIMS) stands against other Wednesday’s top performers.

The stock market regained momentum on Wednesday, with all main indices ending in the green, as investors cheered the Federal Reserve’s decision to keep interest rates unchanged.

The tech-heavy Nasdaq led the gains, rallying 1.41 percent, followed by the S&P 500 with a 1.08 percent gain, and the Dow Jones, by 0.92 percent.

Optimism spilled over into companies, with 10 particularly leading the charge. In this article, we have identified Wednesday’s 10 best performers and detailed the reasons behind their gains.

To come up with the list, we considered only the companies with a $2-billion market capitalization and $5 million in trading volume.

A nurse in a telehealth platform talking with a patient on video call for consultation.

Hims & Hers Health Inc. (NYSE:HIMS)

Shares of Hims & Hers rose 7.59 percent on Wednesday to finish at $33.88 apiece as investors resorted to bargain-hunting following losses from the previous trading day, weighed down by a disappointing rating from an investment bank.

In its latest report, Bank of America assigned an “underperform” rating on HIMS stock as a spike in advertising spending on the Super Bowl event last month would not seem to prop up sales for the company.

This is as the Food and Drug Administration (FDA) announced recently that the bestselling Wegovy and Ozempic, manufactured by Novo Nordisk and which HIMS has been making knockoff versions of, are said to be back in sufficient supply. The FDA pulled the two drugs out of the shortage list.

Meanwhile, Bank of America raised HIMS’ price target by $1 to $22 apiece, a figure that represented a 35-percent downside from its latest closing price.

Overall, HIMS ranks 10th on our list of Wednesday’s top performers. 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 as promising as HIMS but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

Disclosure: None. This article is originally published at Insider Monkey.