Consider Selling HIMS Shares Before Their Earnings Report
Hims & Hers Health (HIMS), a leading digital healthcare company, is set to announce its earnings on Monday, August 4, 2025. The company has experienced significant growth over the past year, with a market capitalization of $15 billion and revenues of $1.8 billion in the last twelve months.
In the past five years, HIMS stock has shown a tendency to react negatively to earnings announcements. Approximately 53% of the time, the stock has recorded a negative one-day return, with the median one-day decline amounting to -5.8%, and the maximum one-day decrease reaching -22.3%.
For traders, this historical pattern suggests two main strategies for pre- and post-earnings positioning:
- Pre-Earnings Positioning: Given the slightly greater than 50% chance of a negative stock move on earnings day, traders might approach HIMS cautiously before earnings. Pre-earnings, some may consider positioning for a potential sell-off or employing hedging strategies to protect against downside risk, while others may try to capitalize on the volatility by trading options or shares according to expected outcomes relative to consensus estimates.
- Post-Earnings Positioning: After earnings are announced, analyzing the stock’s immediate reaction and how it correlates with medium-term returns can guide entry or exit decisions. If the stock moves sharply down but the fundamentals or guidance remain strong, aggressive traders may view this as a buying opportunity.
The recent Q2 2025 earnings showed substantial operational growth. Revenue grew 73% year-over-year, adjusted EBITDA more than doubled, and company guidance remains positive for Q3 and full-year 2025 revenues and EBITDA margins. Despite this, the stock’s price move around earnings has historically skewed negative, potentially reflecting short-term profit-taking or caution amid ongoing legal and competitive risks.
Investors seeking upside with a smoother experience than an individual stock like Hims & Hers Health may consider the High Quality portfolio, which has outperformed the S&P 500 and achieved returns exceeding 91% since its inception. The Trefis RV strategy has also shown strong performance, outperforming its all-cap stocks benchmark.
Analysts expect HIMS to report earnings of $0.23 per share on revenues of $552 million. Traders can use the historical tendency for negative earnings reactions to cautiously position or hedge before earnings and then reassess post-announcement based on actual results and guidance. This balanced approach leverages the recurrent short-term volatility while remaining aligned with the company’s longer-term growth outlook.
Sources: - Historical stock reactions and trading strategies around earnings - Q2 2025 earnings summary and guidance with growth metrics - Investor sentiment and market context of HIMS shares - Analysts' expectations for HIMS earnings - Performance of the Trefis RV strategy and the High Quality portfolio.
Given the historical pattern of Hims & Hers Health's stock reacting negatively to earnings announcements, traders may consider adopting cautious pre-earnings strategies, such as positioning for a potential sell-off or employing hedging strategies to protect against downside risk. After the earnings are announced, analyzing the stock’s immediate reaction can guide entry or exit decisions, with a possible buying opportunity if the stock moves down but the fundamentals or guidance remain strong. Meanwhile, investors seeking a smoother experience than an individual stock like HIms & Hers Health may consider the High Quality portfolio or the Trefis RV strategy, which have shown strong performance in the past. Novo Nordisk, a potential competitor in the weight-loss and obesity sector, might also be of interest to investors following the earnings announcement of Hims & Hers Health.
