Hims & Hers Health, Inc. (HIMS) shares rallied 5.7% in the last trading session to close at $34.75. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 50.5% loss over the past four weeks.

The recent surge in Hims & Hers Health Inc.'s shares can be attributed to the strong fourth-quarter and full-year 2024 results, highlighted by a 95% YoY increase in quarterly revenue to $246.6 million and 65% full-year revenue growth to $872 million, alongside positive adjusted EBITDA margins. Investor confidence is further boosted by the company’s 2025 outlook, projecting revenue between $1.17 billion and $1.20 billion, and continued profitability. Despite regulatory challenges around compounded weight-loss medications, Hims & Hers’ strategic diversification and 48% YoY subscriber growth to 1.5 million underpin optimism for sustained growth.

This company is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of +120%. Revenues are expected to be $535.94 million, up 92.7% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Hims & Hers Health, the consensus EPS estimate for the quarter has been revised 18% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on HIMS going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Hims & Hers Health belongs to the Zacks Medical Info Systems industry. Another stock from the same industry, Fulgent Genetics, Inc. (FLGT), closed the last trading session 1.2% higher at $17.09. Over the past month, FLGT has returned 1.6%.

For Fulgent Genetics , the consensus EPS estimate for the upcoming report has changed -26.9% over the past month to -$0.19. This represents a change of -1800% from what the company reported a year ago. Fulgent Genetics currently has a Zacks Rank of #4 (Sell).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Hims & Hers Health, Inc. (HIMS) : Free Stock Analysis Report

Fulgent Genetics, Inc. (FLGT) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research