Hims & Hers Health and DXC Technology have been highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – July 14, 2025 – Zacks Equity Research shares Hims & Hers Health HIMS as the Bull of the Day and DXC Technology DXC as the Bear of the Day. In addition, Zacks Equity Research provides analysis on MercadoLibre MELI, Amazon AMZN and Sea Ltd. SE.

Here is a synopsis of all five stocks:

Bull of the Day:

Hims & Hers Health is quickly becoming one of the most compelling stories in the market as an emerging powerhouse in the direct-to-consumer healthcare space. The stock has posted outsized gains over the last two years, driven by explosive growth and rising investor enthusiasm, even as it navigates controversy over its efforts to compound its own GLP-1 medications amid nationwide shortages.

That controversy came to a head when Novo Nordisk officially ended its partnership with Hims, a decision that many investors view as shortsighted given the long-term demand trajectory for weight-loss and metabolic drugs. Though Hims stock dropped sharply following the news, shares have rebounded in the following weeks, indicating investors bought shares into the weakness.

What's driving the optimism? Hims & Hers Health boasts robust growth forecasts, accelerating operating leverage, and strengthening analyst sentiment, helping it earn a top Zacks Rank. The company is capitalizing on powerful secular trends: the rising popularity of GLP-1s, the growing demand for personalized healthcare, and a massive consumer shift toward wellness, convenience, and telehealth platforms.

In short, HIMS has the brand, momentum, and strategic positioning to continue thriving as it shapes consumer healthcare.

HIMS Stock Climbs as Earnings Estimates Rise

Fueled by powerful secular tailwinds and a category-defining business model, Hims & Hers is emerging as one of the fastest-growing companies in its market cap range. The company is capitalizing on the intersection of telehealth, personalized wellness, and rising consumer demand for accessible, branded healthcare experiences.

Revenue is expected to surge by an impressive 58% this year, followed by another strong 22% growth in 2026. Even more striking is the company's bottom-line acceleration—earnings are projected to soar 174% this year and climb another 38% next year, reflecting not only strong topline momentum but that significant operating leverage and improved margin discipline.

And yet, even these projections may understate the story. Hims has a consistent track record of outperforming Wall Street expectations, and analysts have been forced to continuously revise their earnings forecasts higher. That upward revision trend is a key driver of the stock's Zacks Rank #1 (Strong Buy) rating.

As analysts scramble to keep up, many investors risk being left behind. HIMS continues to redefine what a modern healthcare company can be, blending brand power, product innovation, and platform scalability in a way that few others in the space have managed.

HIMS Stock Trades in Broad Technical Range

While the long-term growth story remains intact, Hims & Hers stock has experienced considerable volatility, reminding investors that even promising disruptors can face sharp drawdowns. Over the past year, shares have traded within an exceptionally wide range, between $24 and $64, reflecting both the market's enthusiasm and its uncertainty around the company's bold strategic moves.

The most notable recent swing came on the heels of the Novo Nordisk announcement, which triggered a sharp sell-off and created a significant price gap on the chart. While the stock has since bounced back, the event introduced a new technical reference point for traders: the post-news low around $42 now serves as a key support level.

From a technical standpoint, as long as HIMS holds above $42, the risk-reward setup remains compelling. A break below could signal deeper downside potential, but momentum remains constructive. If the broader sentiment continues to improve, and especially if earnings revisions remain strong, there's a solid chance the stock fills the gap and makes a run back toward the upper end of its range in the coming months.

This is a name that tends to move sharply when sentiment shifts, and with a strengthening fundamental backdrop, the technical picture could turn bullish quickly. For growth-oriented investors willing to weather some volatility, HIMS remains a stock to watch closely as it consolidates and potentially builds toward a breakout.

Should Investors Buy Shares in HIMS?

With accelerating growth, rising earnings estimates, and strong positioning in some of the most exciting healthcare trends today, Hims & Hers stands out as a top momentum stock with long-term potential. While volatility and controversy have created short-term noise, the company's underlying fundamentals remain strong, and investor interest continues to build. For those looking to gain exposure to the future of consumer-driven healthcare, HIMS looks like a compelling opportunity worth serious consideration.

Bear of the Day:

DXC Technology has struggled to gain traction in recent years, as persistent revenue declines and a sluggish business transformation have weighed heavily on both its fundamentals and its stock price. Once a major player in IT services, the company has seen its sales fall steadily, leading to stagnation and underperformance in a sector that's otherwise full of innovation and growth.

The stock has dropped nearly 30% year-to-date and is down more than 65% since 2021, reflecting a prolonged period of investor disappointment. Analyst sentiment has continued to deteriorate as well, pushing DXC down to a Zacks Rank #5 (Strong Sell) rating.

While management has laid out a strategy to pivot away from legacy infrastructure services and toward higher-growth digital and cloud offerings, the turnaround has been slow to materialize. There may be potential in the longer term, but for now, the company remains in a difficult position. Until investors see clear signs of stabilization and renewed growth, DXC is a stock best left on the sidelines.

DXC Technology Stock Falls Alongside Revenue

DXC Technology's prolonged decline in revenue continues to be a major overhang for the stock. Annual sales have dropped significantly—from approximately $22 billion in 2018 to just $12.8 billion over the trailing twelve months, a nearly 42% decline that reflects the company's struggle to transition away from its legacy business model.

Unfortunately, the outlook doesn't suggest a turnaround is imminent. Analysts expect revenue to decline another 4.5% in the current fiscal year, followed by an additional 2.8% decline next year, indicating that demand for DXC's core offerings remains under pressure despite management's transformation efforts.

Adding to the bearish case, analyst sentiment around profitability has worsened. Over the past 60 days, consensus earnings estimates have been revised downward—current year EPS estimates have fallen by 7.9%, while next year's projections have dropped by 9.3%. This steady erosion of expectations signals broad skepticism among analysts and institutional investors about the company's near-term ability to stabilize or grow earnings.

DXC Stock on the Verge of a Breakdown

Technical weakness is compounding DXC Technology's fundamental challenges, with selling pressure intensifying in recent sessions. On Friday, the stock was hit particularly hard, closing sharply lower with bearing momentum pickin up. Shares are now hovering just above a critical support level near $14.20.

If DXC fails to hold this level, it could trigger a technical breakdown, opening the door to another wave of selling. A decisive move below this support zone would confirm the downtrend and could send the stock cascading to new multi-year lows. With no strong bullish catalysts in sight, the path of least resistance appears to be lower unless a significant reversal develops soon.

Should Investors Avoid DXC Stock?

Given its declining fundamentals, weakening technical setup, and continued negative analyst sentiment, DXC remains a high-risk name with limited near-term upside. Until the company proves it can stabilize revenue and execute its transformation strategy more effectively, investors are likely better off staying on the sidelines.

Additional content:

Tariffs Hit Brazil: Can MELI Maintain Momentum in Its Biggest Market?

MercadoLibre remains firmly rooted in Brazil, which currently contributes more than 50% of its revenues. Strong growth across commerce and fintech, rising brand preference and new Mercado Pago branding have made Brazil its most important and established market.

However, President Trump's 50% tariff on Brazilian imports has raised concerns. MercadoLibre stock was down more than 3% in Thursday trading after Trump's announcement. While it targets geopolitical tensions more than trade flows, the resulting pressure on Brazil's economy could indirectly affect MercadoLibre. A weaker currency and slower GDP growth may squeeze consumer spending, impacting e-commerce demand. Potential retaliatory moves from Brazil may also disrupt supply chains or raise logistics costs, adding to the uncertainty.

In the first quarter of 2025, MercadoLibre generated $3.08 billion in net revenues from Brazil, up 20% year over year in USD terms. The Zacks Consensus Estimate for 2025 revenues from Brazil is pegged at $14.3 billion. However, any retaliation from Brazil or further escalation in tariffs could add pressure to MercadoLibre's operations in its biggest market, which investors should monitor closely.

MELI is ramping up its commitment to Brazil with a record 34 billion reais ($5.8 billion) investment planned for 2025, a 48% jump from last year. The spending will support logistics, technology, marketing, entertainment, hiring and loyalty programs across both commerce and fintech. With Brazil contributing over half of MELI's revenues, this move highlights its focus on strengthening operations in its most important market.

MELI Faces Stiff Competition in Brazil

MercadoLibre faces rising competition in e-commerce from Amazon and Sea Ltd., which are expanding their operations in Brazil.

Amazon offers customers more than 100 million products across 50 categories in the country. Amazon's logistics network in Brazil includes 10 fulfillment centers and 22 delivery stations throughout the country.

Shopee, backed by Sea Limited, is expanding in Brazil with aggressive pricing, mobile-first engagement and incentives for sellers. Sea Limited's Shopee opened its first fulfillment distribution center in the Sao Paulo metro area late last year, designed to store products from Brazilian sellers and speed up last-mile delivery in the region.

MELI's Share Price Performance, Valuation and Estimates

MELI shares have gained 41.7% in the year-to-date (YTD) period, outperforming the Zacks Internet – Commerce industry and the Zacks Retail-Wholesale sector's growth of 6.8% and 4.5%, respectively.

From a valuation standpoint, MELI stock is currently trading at a forward 12-month Price/Sales ratio of 3.91X compared with the industry's 2.17X. MELI has a Value Score of D.

The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $12.01 per share, which has remained steady over the past 30 days, indicating 14.60% year-over-year growth.

MercadoLibre currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

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