Shares of Hims & Hers Health (HIMS) are headed for their fourth-straight daily drop, down 2.4% to trade at $45.53 at last check, as investors look ahead to the company’s third quarter results, due out after the close Monday, Nov. 3. Since hitting a February record high of $72.98, the stock has staged several rallies that have run out of steam around $65. The recent pullback has HIMS nearing a historically bullish trendline, however, meaning another short-term bounce could be imminent.
Per Schaeffer’s Senior Quantitative Analyst Rocky White, the equity is within 0.75 of the 200-day moving average’s 20-day average true range (ATR), after spending at least 80% of the last 10 days above this trendline. This has happened four other times over the last three years, after which the stock was higher one month later three times, averaging an 18.2% gain. A move of similar magnitude from the equity’s current perch would put it back near $51.45.
Historically, Hims & Hers stock has a split history of post-earnings moves. The equity finished lower after four of its last eight reports, including a 12.4% drop in August. The stock has averaged a next-day swing of 13.3%, regardless of direction. This time around, investors are pricing in a higher 17.1% move.
Daily HIMS With 200-Day Moving Average
LSEG Workspace
Analysts are extremely pessimistic, with 11 of 14 in coverage sporting a “hold” or worse rating. In other words, there is plenty of room for upgrades, should this bearish sentiment begin to unwind.
More good news for prospective buyers is that HIMS tends to outperform options traders’ volatility expectations. This is per its Schaeffer’s Volatility Scorecard (SVS) of 80 (out of 100).