Bullish Roll Up, It’s Just The Start!

Dec 11, 2024

- Bullish Financials: Q3 showed a 77% YoY revenue growth and over 1000% increase in net profit, signaling robust financial health.

- Product Expansion: New categories are driving up order rates and revenue per user, potentially increasing the stock's valuation.

- Customer Engagement: High personalization rates suggest strong customer loyalty, likely reducing churn and supporting higher stock prices.

- Balance Sheet Strength: No debt and a 70%+ increase in cash on hand offer a solid foundation for future growth or acquisitions, a positive for traders.

- Brand Power: Recognized as a trusted health brand, potentially leading to a premium in stock pricing due to brand equity.

- Unit Economics: Improving LTV/CAC ratios with new categories, akin to top SaaS companies, indicating sustainable growth and profitability.

- Market Sentiment: Despite some volatility, there's optimism for continued growth, particularly in niche markets like ED and hair loss treatments, which could support a bullish outlook on the stock.

Technical Insight:
- Monitor for breakouts above recent resistance levels, potentially driven by continued operational success and market expansion.
- Watch for volume spikes on positive news or earnings beats as indicators of strong buying interest.
- Keep an eye on short interest; any squeeze could lead to rapid price appreciation.

Risks to Consider:
- Regulatory changes affecting compounded drugs.
- Market competition from giants like Amazon in telehealth.

Overall, the technical setup for HIMS might lean bullish if these fundamental strengths continue to be reflected in market performance.