To The Moon

$Hims & Hers Health Inc.(HIMS)$ ( ▼ 8.82% ) may be the most controversial stock in the Asymmetric Portfolio. Some investors think it’s a disruptive company with 10x+ potential. Others think it’s a parasite on society.

Hims & Hers’ Catalysts

There’s a story in any stock. A rise. A fall. And with Hims & Hers, the story is ongoing and volatile.

I’ll be back with more on the story after earnings early next week, but I thought we should cover some of the latest with the company.

The Value

I’m going to start with the value, or what we pay as investors. Hims & Hers is in its high growth phase, so we shouldn’t be valuing the company based on earnings or free cash flow. The price-to-sales multiple is the most appropriate, and shares trade near lows since the company went public.

It’s easy to see why. The rate of growth slowed to a crawl in Q1 and only recovered for a single quarter. And margins have fallen, which investors don’t typically like.

But there should be good news ahead. Management’s guidance for the second half of 2026 implies a growth rate of around 50%.

And with what’s happening under the hood, that’s hardly the end of the company’s growth.

The Long-Term Catalysts

Weight loss has been the story of the past two years for Hims & Hers. But it’s hardly the end for the company. Momentum is building in ways that could build a much, much bigger company.

International Expansion

In the last year, Hims & Hers has acquired Zava to get into Europe and Eucalyptus, with operations in Australia and Japan.

And in October, the company added Germany to the mix.

International expansion leverages the technical operations Hims & Hers has and expands the brand internationally as well.

Testosterone

If Hims & Hers is going to be a 10x stock, it’s going to have to be more than what it is today. ED, hair loss, and weight loss are great, but the business needs to become more. It needs to be a place for all kinds of health and wellness solutions.

To that end, the company recently launched testosterone.

This is another offering that comes with a subscription model, which management seems to be leaning toward. $50 per month for a subscription and, in the case of testosterone, $50 or more for medication.

Peptides

This is all laying the groundwork for what could be an enormous launch in the next month or two.

We learned this week that HHS will allow some peptides to be sold by compounding pharmacies. Hims & Hers owns both a peptide facility and compounding pharmacies, so this is right up their alley.

What we don’t know is pricing and adoption by users. Superpower did show its hand in pricing, and it looks like $150 per month at the low end is where products will start.

Let’s just do some simple math to show how big this business could be.

If Hims & Hers can get 250,000 new peptide customers in 2027 at $150 per month, that’s an incremental $450 million in revenue, or nearly 20% growth in revenue over the past year.

1 million subscribers and it’s $18 billion in revenue!!!

This could be an absolute rocket ship if peptides take off and Hims & Hers is the only company with a global footprint to take them to market. And if this growth does materialize, the stock deserves a lot more than a 2.5x price-to-sales multiple.