To The Moon

$Hims & Hers Health Inc.(HIMS)$ has been one of my highest-conviction stocks for most of the past year, only to see its shares go through the market ringer.

But the past few weeks, we’ve gone from market capitulation to euphoria as shares become semi-loved again. Sentiment hasn’t fully flipped, but it’s getting there, and I continue to think this is one of the highest potential stocks in the market.

The reason shares are up over the past week is peptides. The FDA officially removed 12 peptides from “Category 2”, which meant they couldn’t be compounded, and scheduled a meeting in July with an advisory panel to discuss whether some of these peptides can be compounded again.

This could be a huge deal. I called Peptides a 1,000x opportunity for Hims & Hers a few weeks ago, and it could open up a new phase of growth for the company.

I discussed the thesis (recorded prior to the peptide ruling from the FDA) with the Chit Chat Stocks crew on April 9, 2026, which ended up being timely given the FDA announcement.

Huge Opportunity (HIMS) In The Peptide Market? Why Hims & Hers Stock May Benefit + Healthcare Industry Implications

The combination of a deal with Novo Nordisk last month and the peptide announcement drove Hims & Hers’ very, very predictable comeback on the market. I have been highlighting why the perceived risk around Hims & Hers is overblown and put my money where my mouth is by buying the Asymmetric Portfolio nearly every month in the past year, including in March at $15.03.

While Hims & Hers’ stock is running, the potential for both operational and valuation tailwinds continues to grow.

Hims & Hers, GLP-1 Drama, and the Platform Play

February was a scary month for Hims & Hers. The company launched a GLP-1 pill that upset Novo Nordisk and the FDA. $Novo-Nordisk A/S(NVO)$ officially filed a lawsuit against the company, and the stock dropped like a rock. But in early March, Hims & Hers and Novo had made up, and the FDA seemed happy with the company’s changes.

If you followed Asymmetric Investing closely, you weren’t surprised by this outcome because it was always the rational move for Novo and Hims & Hers to work together.

• The Huge Risk: When Hims & Hers launched a compounded GLP-1 pill, the market freaked out.

• Novo’s Lawsuit: I did an AMA with members, and the takeaway was that a deal between Hims & Hers and Novo Nordisk was likely, even if it was messy to get there. A patent lawsuit wasn’t going to be a big win for Novo, and the company was losing market share, needing all the sales partners it could get.

• We Have a Deal: The market found out about the deal between Novo Nordisk and Hims & Hers before anything was officially announced, but the deal ended the lawsuit, led Hims & Hers (along with all compounders) to do less compounding, and gave the company access to low-cost branded GLP-1s from Novo.

What changed in the end was Hims & Hers becoming more of a platform company than a compounder.

What I mean by that is, Hims & Hers had been pushing its compounding capabilities as far as possible into a grey zone with the FDA. Dozens of compounders had gotten warning letters from the FDA, noting their marketing practices were going too far. Hims & Hers had avoided most of that scrutiny, but as the biggest telehealth company, the market was nervous, and the risk of a Novo lawsuit was growing.

When the lawsuit hit, the market thought the worst outcome was likely, but what Hims & Hers did was change its model from pushing compounded treatments to becoming the intake platform for patients and selling branded, generic, and compounded prescriptions. The weight loss membership also includes some non-prescription assistance like workouts and meal plans, although I wouldn’t say that’s a huge value add at the moment.

The idea with being a platform is that Hims & Hers can be the company patients go to for healthcare questions, and they’ll sell any available treatment rather than pushing compounding, which was good for them.

I think this is the right move long-term, and it gives more optionality with peptides.

Peptides Become a Real Opportunity

The peptides that have been removed from Category 2 and may be available to compound are unique because they aren’t patent-protected, like GLP-1s (which are also peptides). So, Hims & Hers has an advantage because it’s the touchpoint with the consumer and has the capacity in-house to serve demand.

Hims & Hers is one of only a few companies that could sell peptides at scale early on, and after buying a peptide facility a year ago, it’s likely they’ve been building a plan to do just that.

You could also get peptides prescribed from your doctor, but I think there will be an inherent advantage for these new, more nimble platforms.

• Hims & Hers can incorporate peptide knowledge and research at scale with providers.

• The cost structure is different because there’s no doctor’s fee.

• The time/effort to use Hims & Hers is lower than going to a doctor.

• As a digital platform, Hims & Hers can intake data from labs and wearables faster than traditional doctors, updating treatment plans in real-time.

From what I understand, peptides will be very different than how we prescribe most medicines today. One peptide may work well for healing or weight loss for you, and it may not work for me. So, more adjustments to a treatment plan may be needed than with a normal “here’s a prescription” from the doctor.

How big is the peptide market? GLP-1s were a $68.9 billion business for Novo Nordisk and $Eli Lilly(LLY)$ in 2025, and interest in peptides is nearly 2x the interest in GLP-1s, according to Google Trends.

The opportunity is big for the companies that get there first. The market is finally starting to see that potential, not just the risks, for Hims & Hers.

Value & The Short Squeeze

The potential for Hims & Hers is hard to calculate, but I’m going to try to put it into perspective.

The company grew revenue 64.5% over the past three years on a compound annual basis, grew 59% in 2025, and guided for 15%-24% growth in 2026, which I think sandbags the potential even before peptides.

Despite that growth, shares trade for 2.8x sales even after the recent pop in shares. That puts it near the bottom of pharma companies on a price-to-sales basis (Hims & Hers isn’t optimized for profitability, so I think this is the best metric to use). And it’s growing much faster than all of these companies.

If you prefer to compare Hims & Hers to telehealth stocks, which have largely struggled to build a sustainable business model, Hims & Hers isn’t the cheapest…

…but it is growing faster than everyone else. And Talkspace (in red above and below) is being acquired by Universal Health Services.

If Hims & Hers ends up building a sustainable business model, the stock is extremely cheap. I wouldn’t be surprised to see the valuation 5x or more when the market realizes this could indeed be an aggregator or platform in healthcare. But we aren’t “there” yet, and that’s the opportunity for investors.

After the acquisition of Zava and Eucalyptus, Hims & Hers will have somewhere just shy of 5 million subscribers. But what if that turns into 25 million in five years or 100 million in 10 years? The earned multiple would be much higher.

And add this to the fuel. Over 36% of Hims & Hers shares are still sold short. If the stock keeps rising, that could create a short squeeze.

The last few weeks have been a comeback for Hims & Hers stock, but we haven’t yet seen the company’s plans for peptides or operations shift from new product offerings.

I don’t expect to see a big turn in operations until Q2 2026, when the Novo deal will start to show fruit, and peptides probably won’t move the needle until Q3. In the meantime, I’ll be happy with this as one of the biggest positions in the portfolio because the comeback is underway, and I think we’ll see the market sentiment around this stock go from extreme fear and skepticism to euphoria by the end of 2026.