Hims & Hers Health: Stock Undervalued Despite Margin Pressures

This financial analysis argues that Hims & Hers Health (HIMS) stock is significantly undervalued following its first-quarter 2026 earnings report. Although the company faced negative market sentiment due to margin pressures caused by transitioning from compounded to branded GLP-1 medications, it successfully raised its full-year 2026 guidance and reaffirmed its long-term 2030 revenue and EBITDA targets. The author highlights that normalized gross margins remain robust and that marketing spend can be adjusted to improve profitability. A key growth driver identified is the partnership with Novo Nordisk, which is expected to bring in 100,000 new weight-loss subscribers monthly, potentially driving a 30–35% year-over-year increase in subscriber growth. Based on discounted cash flow (DCF) models, the analyst estimates the intrinsic value of the stock to be over $100 per share, suggesting substantial long-term growth opportunities through platform expansion. The article concludes with a strong buy recommendation, asserting that the current market price does not reflect the company's fundamental strength and future potential.