One of 2024's best stocks is at an intriguing entry point
Hims & Hers Health Inc (NYSE:HIMS) stock is sitting out the broad market rally today, last seen down 8.4% to trade at $26.15. The personalized healthcare company -- a key player in the weight loss drug craze -- is taking a hit after the Food and Drug Administration (FDA) announced Eli Lilly's (LLY) weight-loss drug shortage was resolved.
HIMS is on track for its worst single-session decline since Nov. 14, when Amazon.com (AMZN) entered the telehealth services fray. The shares have taken an over 20% haircut since a Nov. 27 record high of $35.02 and are testing newfound support at their 50-day moving average, which emerged last month. Year to date, the equity is 189.9% higher.
Short sellers keep piling on, with short interest up 25.9% in the most recent reporting period. The 42.62 million shares sold short account for 23.1% of HIMS' total available float. Upgrade potential is there, too, with nine of 14 brokerages in coverage sporting "hold" or worse ratings.
It's also worth noting that the stock has consistently outperformed volatility expectations in the last 12 months, as reflected in its Schaeffer’s Volatility Scorecard (SVS) score of 91 out of 100.