I sold my Hims shares for a modest profit a few years ago because I didn't see a competitive advantage, and the market was saturated. I was waiting for them to take the next step, and it seems like they have with the recent earning call. Nice to see a 30%+ pop.
Looks like they have a rock solid management, and they offer products that have consistent demand:
- Erectile dysfunction (ED) and premature ejaculation (PE) treatments will always be in demand.
- Their skincare and hair loss products are strong.
- The addition of weight loss treatments has been significant. They offer Bupropion, Metformin, and Naltrexone/Topiramate, all proven weight management medications. They have medication kit 1 that offers all 4 of them. That's risky because of side effects, but obese people will sure love it. The key here is keep them coming back for more after they lose weight. They need to offer maintenance plan for a cheaper price. Currently $295 for 3 months and $395 plan for 5 months. They need to offer cheaper options and monthly plans IMO.
- I've noticed their products in Target, and while I like the clean branding, it seems a bit cheap for my taste. But at least they have products people can buy without ordering through them.
- Their mental health offerings are expanding.
Investing in Hims is no longer a speculative bet brehs. With strong management, this is a growth company poised for significant expansion. If they execute well, I can see a path to a 7-10x in 5 years. I'll be satisfied if they reach a market cap of 10 billion. For a telehealth company to double or triple its market cap from 10 billion is a significant achievement, as seen with Teladoc which I feel have a bad management. I never liked their platform.
I'm committing to investing 10k this week and will dollar-cost average. I plan to follow their earnings calls closely and do further research. Hims is my top growth stock pick. I would love for them to crash below $8. That would be the happiest day because i'll be selling some stuff to buy some more.