HIMS & HERS HEALTH INC (NYSE:HIMS) Fits Minervini’s Trend Template and High-Growth Momentum Strategy

HIMS & HERS HEALTH INC (NYSE:HIMS) has been recognized as a potential fit for both Mark Minervini’s trend-based strategy and high-growth momentum investing. The selection method blends Minervini’s Trend Template, a structured way to spot stocks in strong upward trends, with a High Growth Momentum (HGM) rating to confirm solid earnings and revenue growth. This two-step method helps identify stocks that show not only strong technical momentum but also the fundamental health to support continued growth.

Why HIMS Aligns with the Minervini Trend Template

Minervini’s approach focuses on stocks in clear upward trends with notable relative strength, tight price ranges, and backing from institutional investors. Here’s how HIMS fits these requirements:

• Price Above Key Moving Averages:

  • The stock trades at $57.65, significantly above its 50-day ($53.56), 150-day ($41.46), and 200-day ($37.29) moving averages.
  • The 200-day MA is rising, confirming a long-term positive trend.

• Relative Strength:

  • HIMS has a ChartMill Relative Strength (CRS) score of 97.8, meaning it beats nearly 98% of all stocks.
  • It also ranks in the top 4% of its sector (Health Care Providers & Services).

• 52-Week High Proximity:

  • The stock is within 21% of its 52-week high ($72.98), a key Minervini factor for momentum.

• Stage 2 Uptrend:

  • The stock has gained 164.8% over the past year, with steady upward movement in both short-term (24.6% in 1 month) and long-term (105.2% in 3 months) trends.

High Growth Momentum Fundamentals

Beyond technicals, HIMS shows rapid growth in earnings and revenue, essential for high-growth investors:

• Earnings Growth:

  • EPS (TTM) rose 7,000% YoY, with recent quarterly growth rates of 300% (Q2Q) and 1,000% (prior quarter).
  • The company has exceeded EPS estimates in all of the last four quarters by an average of 192.8%.

• Revenue Expansion:

  • Revenue jumped 86% YoY (TTM), with the latest quarter up 110.7%.
  • Sales growth has increased sequentially (95.1% in Q-1, 77.1% in Q-2).

• Profitability Improvements:

  • Profit margins widened to 8.4% in the last quarter, up from 5.4% in the prior quarter.
  • Free cash flow per share grew 3,974% YoY, indicating strong operational efficiency.

Technical Analysis Summary

ChartMill’s technical report gives HIMS a perfect 10/10 technical rating, highlighting:

• Strong long- and short-term upward trends.
• High relative strength compared to peers and the broader market.
• Liquidity (avg. daily volume: 41.6M shares).

However, the setup rating is 3/10, suggesting the stock may be overextended after its recent rally. Investors should monitor for a pullback or consolidation to improve the risk/reward balance.

Next Steps

For more stocks matching this high-growth momentum and trend template strategy, check the High Growth Momentum + Trend Template screen.

Disclaimer: This is not investment advice. Our content is for informational and educational purposes only. Read our full disclaimer here.