Hims & Hers Health (HIMS) is back in focus after its second quarter 2026 earnings, which showed US$753.2 million in sales alongside a shift from profit to a US$86.3 million net loss.

Over the past year, Hims & Hers Health has combined a 26.9% 90 day share price return with a 1 year total shareholder return that declined 36.4%, which suggests recent momentum has improved even as longer term holders still sit on sizeable gains from earlier years.

If you are interested in how health and AI trends might shape your portfolio beyond Hims & Hers Health, it could be worth scanning for other opportunities in 43 healthcare AI stocks.

After Hims & Hers Health’s sharp swing from profit to loss and a strong three year share run, the key issue now is simple. Is most of the stock’s value story already priced in, or is there still clear upside ahead?

Most Popular Narrative: 81.6% Undervalued

The most followed narrative on Hims & Hers Health puts fair value at $173.02 per share compared with the last close at $31.77. That gap hinges on an aggressive long term growth story that goes well beyond the latest quarterly loss.

Over the long term (10yrs), Hims & Hers has an unusually large addressable market ahead of it. The company’s growth is driven by three reinforcing dimensions:

• Expanding market size, digital healthcare adoption continues to grow globally

• Category expansion, new offerings such as hormonal health, longevity, and sleep

• International scaling, multiple geographies already in the pipeline (e.g. Brazil, Australia)

• Growth inside of the current categories

Want to see why this narrative stretches Hims & Hers Health’s fair value so far above today’s price? It leans on rapid revenue expansion, improving margins and a rich future earnings multiple usually reserved for high growth platforms. Curious which specific growth and profitability assumptions sit behind that figure and how far they extend into the future? The full narrative sets out the exact path that connects today’s loss making profile to that valuation target.

Result: Fair Value of $173.02 (UNDERVALUED)

However, this Hims & Hers Health narrative could be knocked off course if subscriber growth slows or if key weight loss partnerships and regulatory conditions shift in an unfriendly way.

Next Steps

With sentiment on Hims & Hers Health clearly split between risk and reward, it makes sense to move quickly and check the underlying data yourself. To see how those concerns and potential upsides balance out, start with the 2 key rewards and 1 important warning sign.

Looking for more Hims & Hers Health style investment ideas?

If you stop with Hims & Hers Health, you could miss other stocks that fit your approach. Use these focused stock lists to keep your watchlist sharp.

• Target higher potential value by scanning companies that appear attractively priced on quality and fundamentals through the 51 high quality undervalued stocks.
• Strengthen your income stream by reviewing stocks that feature resilient balance sheets with yields above 5% using the 9 dividend fortresses.
• Protect your downside by filtering for companies that carry lower overall risk profiles via the 83 resilient stocks with low risk scores.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.