The health care sector was one of the best performing sectors in the S&P 500 last month, with a gain of around 6%. But while that is again led by a few Big Pharma companies, it has also been reflected in the performance of smaller firms.
One of those is mid-cap Hims & Hers Health NYSE: HEa telehealth platform that provides direct-to-consumer (D2C) personal care products and virtual medical services.
Over the past 30 days, HIMS has risen more than 45%, bringing the stock's year-to-date (YTD) gain to nearly 20%. After such a run, the stock may be due for a temporary breather. But according to health care industry experts, the coming catalyst could be hugely profitable for Hims & Hers in 2027 and beyond, putting the stock in a buying position in its next recovery.
GLP-1 Craze Raises Employer Health Care Plan Costs
His Life and Hers Today
His & Her Life
- 52 week interval
- $13.74
▼
$70.43
- Target Value
- $30.63
As the cost of weight-loss drugs continues to rise, Reuters recently reported that some manufacturers are planning to discontinue GLP-1 therapy, including Wegovy, Ozempic, Zepbound, Mounjaro, and Foundayo—products manufactured by Novo Nordisk. NYSE: NVO and Eli Lilly NYSE: LLY.
Last year, more than 40% of employers included weight loss drugs, and this year's estimates are about the same. But an analysis by two industry groups cited by Reuters shows that may change by 2027.
According to the policy research group Business Group on Health, about 10% of employers who currently provide GLP-1 weight loss medications say they plan to stop using them by 2027. A second survey by Mercer, a benefits consultancy, finds that 5% of large employers plan to drop coverage by 2027 or are considering doing so.
While that's sad news for those receiving treatment, it's welcome news for HIMS shareholders. Patients losing health care for GLP-1 drugs should be a boon to Hims & Hers Health, which currently generates about one-third of its revenue from its weight loss business.
Analysts forecast the company's revenue to grow from an estimated $2.89 billion in 2026 to $3.45 billion in 2027, and the growing demand for prescription weight loss drugs among devastating insurance options should play a major role in that top-line growth.
The lost coverage of GLP-1 treatment should encourage the move to D2C healthcare providers, where Hims & Hers acts as a natural environment due to its platform that combines access to the medical provider, unlimited clinical consultation, and pharmacy filling services into one systematic subscription.
Technical Analysis and Wall Street Suggest Corrections Ahead
With its recurring revenue model, Hims & Hers should be a long-term beneficiary of the downsizing. The platform charges $39 for the first month of its weight loss membership. After that, the fee rises to $149 per clinic subscription, not including the cost of the drug itself. Medications are billed separately, and Hims says membership does not include or guarantee a prescription. Combined oral options, for example, can run $145 to more than $199 per month, while GLP-1 branded pens—like the Wegovy—can run even more.
However, following its nearly 160% gain since its YTD low on Feb. 27, HIMS seems overdue for a price adjustment. According to the Relative Strength Index (RSI)—a technical momentum indicator that indicates whether a stock is overbought (above 70), oversold (below 30), or fairly priced (somewhere in between)—HIMS has entered overbought territory.
As shown by the green arrow below, the RSI chart on the one-year HIMS reads 70.86, suggesting that the stock is overbought and due to a price reversal:
Technical analysis is by no means a perfect science. But the last two times the stock's RSI broke 70—first in mid-April and again in mid-June—HIMS retreated more than 28% and about 8%, respectively, before continuing its rally.
Hims & Hers Health Stock Forecast Today
$30.63
-20.07% LowHold on
Based on 16 Analyst Ratings
| Current Price | $38.33 |
|---|---|
| High Forecast | $60.00 |
| Average prediction | $30.63 |
| Low Prognosis | $21.00 |
Hiss & Hers Health Stock Forecast Details
Meanwhile, Wall Street remains bearish on the stock after its strong performance this year. Of the 16 analysts currently covering HIMS, only four give a buy rating.
Overall, the stock earns a consensus rating of hold with a 12-month price range implying a potential downside of more than 19% from current prices.
Relatively speaking, with a high-voltaty beta of 2.35, HIMS's current short interest now stands at over 32% of the float, or about 65.4 million shares with a value of $1.97 billion.
This is the most shorted stock since March and marks a nearly 5% month-over-month gain.
At the same time, interior work has seen an increase in sales this year. In Q1 2026, 3.46 million shares of HIMS were sold without being bought. In Q2, that figure was up $4.86 million versus $1.17 million in sales.
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