Hims & Hers Health, Inc. (HIMS) shares soared 23% in the last trading session to close at $35.04. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 3.6% loss over the past four weeks.
The recent surge in Hims & Hers Health Inc.'s shares can be attributed to the company’s announcement that it has inked a deal to sell Novo Nordisk's weight-loss drug, Wegovy, on its telehealth platform. The collaboration is likely to allow people in the United States to access NovoCare Pharmacy directly through Hims & Hers Health's online platform. Patients can bundle all dose strengths of Wegovy with a Hims & Hers membership for $599 per month.
This company is expected to post quarterly earnings of $0.14 per share in its upcoming report, which represents a year-over-year change of +180%. Revenues are expected to be $537.85 million, up 93.4% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Hims & Hers Health, the consensus EPS estimate for the quarter has been revised 21.3% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on HIMS going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Hims & Hers Health is part of the Zacks Medical Info Systems industry. Health Catalyst (HCAT), another stock in the same industry, closed the last trading session 0.3% higher at $4.07. HCAT has returned -10.4% in the past month.
For Health Catalyst
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Hims & Hers Health, Inc. (HIMS): Free Stock Analysis Report Health Catalyst, Inc. (HCAT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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