While Hims & Hers Health ( NYSE:HIMS ) shareholders have been in the black for more than a year, those who bought a week ago are out of luck.

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Himes & Hers Health, Inc. (NYSE: It) shareholders may be concerned after seeing its stock price drop 13 percent in the past week. But that doesn’t diminish the impressive returns of the past year. In fact, the stock price has risen an impressive 101% in that time. So it’s important to look at recent price cuts through that lens. Investors should consider whether the business itself has the fundamental value needed to sustain profitability.

While the stock is down 13 percent this week, it’s important to focus on the long term and see if the stock’s historical returns are driven by fundamentals.

Check out our latest analysis for Himes and Hers health

Himes & Hers Health has not been profitable over the past twelve months, and we are unlikely to see a strong correlation between share price and earnings per share (EPS). Income is arguably our next choice. Generally speaking, unprofitable companies are expected to grow earnings every year and at a good clip. As you can imagine, rapid revenue growth, when expected, often leads to rapid profit growth.

Himes & Hers Health grew its revenue by 94% last year. That’s more than most pre-profit companies. Meanwhile, the market paid attention, and in response, the stock price increased by 101%. Even if the company is not profitable, such revenue growth is bound to attract attention. Strong share price gains indicate optimism, so there may be a better opportunity for buyers as the stimulus fades a bit.

The company’s revenue and earnings (over time) are shown in the image below (click the link to see the actual numbers).

NYSE:HIMS Earnings and Revenue Growth for March 12, 2023

We consider insiders to have made significant purchases in the past year. Having said that, most people consider revenue and revenue growth trends to be a more meaningful guide to the business. If you’re thinking of buying or selling Himes & Hers Health stock, check this out free A report showing analyst profit forecasts.

A different perspective

Interestingly, Himes & Hers Health’s total shareholder return last year was 101 percent. What is quite clear is that it is far preferable to the abysmal 2.9% annual average. bankruptcy He suffered in the last three years. Maybe the business has turned around — or else it has restored investor confidence. Tracking stock price performance over the long term is always interesting. But to better understand Himes and Hers health, we need to consider many other factors. Take risks, for example – Himes and Hers have health. 1 warning sign We think you should know.

There are many other companies that buy stock. Maybe you do is not You want to lose this free A list of growing companies that insiders buy.

Please note, the market returns quoted in this article reflect the average returns of market balances currently traded on US exchanges.

Pricing is complex, but we’re helping make it simple.

Find out if Himes and Hers Health is overrated or undervalued by checking out our comprehensive analysis Fair value estimates, risks and caveats, dividends, insider trading and financial health.

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This Simply Wall St article is general in nature. We only provide opinions based on historical data and analyst forecasts using an unbiased methodology and our articles are not intended to be financial advice. It does not provide advice to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide you with long-term analysis driven by fundamental data. Note that our analysis may not include recent price-sensitive company ads or quality material. Simply put, Wall St has no position in any of the listed stocks.

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