HIMS Lost 22% In A Month. Do You Buy Or Wait?
Hims & Hers Health (HIMS) stock is down 22.2% in 21 trading days. Already own the stock or planning to buy? You might want to re-consider based on the valuation as the stock still looks expensive. Consider the following data:
- Size: A $10 Bil company with $2.0 Bil in revenue currently trading at $44.57.
- Fundamentals: Last 12 month revenue growth of 88.7% and operating margin of 6.2%.
- Liquidity: Has Debt to Equity ratio of 0.1 and Cash to Assets ratio of 0.6
- Valuation: Currently trading at P/E multiple of 51.7 and P/EBIT multiple of 79.6
- Has returned (median) 46.7% within a year following sharp dips since 2010. See HIMS Dip Buy Analysis.
While we like to buy dips if the fundamentals check out – for HIMS, see Buy or Sell HIMS Stock – we are wary of falling knives. Specifically, it is worth trying to answer if things get really bad, and HIMS drops another 20-30% to $31.20 levels, will we be able to hold on to the stock? What is the worst case scenario? We call it downturn resilience.
Below is a deep dive into Hims & Hers Health (HIMS) downturn resilience – specifically, its performance vs the market during past crises? Turns out, the stock saw an impact slightly better than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.
Below are the details, but before that, as a quick background: HIMS provides a multi-specialty telehealth platform connecting consumers to licensed professionals, offering medical consultations and curated wellness products like vitamins, supplements, and health items via wholesale partners.
2022 Inflation Shock
- HIMS stock fell 87.3% from a high of $24.46 on 8 February 2021 to $3.11 on 11 May 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 18 June 2024
- Since then, the stock increased to a high of $68.74 on 19 February 2025 , and currently trades at $44.57
| HIMS | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -87.3% | -25.4% |
| Time to Full Recovery | 769 days | 464 days |
2020 Covid Pandemic
- HIMS stock fell 14.7% from a high of $11.75 on 30 September 2020 to $10.02 on 28 October 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 7 December 2020
| HIMS | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -14.7% | -33.9% |
| Time to Full Recovery | 40 days | 148 days |
Worried that HIMS could fall much more? You could take a look at the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.