Hims & Hers Health (HIMS) has risen amid some swift navigation around recent rulings involving obesity drugs from the Food and Drug Administration. It's one reason why Hims & Hers Health stock holds first place in the elite IBD 50 list of growth stocks from Investor's Business Daily.

The company sold knockoffs of an active ingredient in Novo Nordisk's (NVO) weight-loss drug Wegovy until the FDA removed that ingredient from its shortage list. That meant Hims & Hers could no longer sell its compounded version. The new rule hit Hims stock, and it cratered on Feb. 21.

But the company overcame that setback when it started offering Wegovy on its platform for a membership fee of $599 per month. Shares soared on the news and retook their 50-day moving average on April 29.

The company also has started selling Eli Lilly's (LLY) weight-loss drug Zepbound on its platform.

First-Quarter Results

Shares then kept up that momentum and cleared a double-bottom base's buy point at 38.69 headed into earnings on May 5.

First-quarter sales grew 111%, accelerating for the fourth straight quarter to $586 million. Earnings accelerated for the second continuous quarter and grew 300% from the prior year to 20 cents per share.

Also, total subscribers increased 38% annually to 2.4 million during the period while average revenue per subscriber increased 53% to $84 a month.

For the current quarter, the company's sales outlook sits at $540 million at the midpoint. Further, the company maintained its full-year sales outlook of $2.35 billion at the midpoint and has a financial target of $6.5 billion at the lower end in 2030.

That gave Hims & Hers Health stock another boost. Shares rocketed 18% on May 6 and have been adding to their gains. The IBD 50 leader has more than doubled this year, as of Wednesday's closing price.

Hims & Hers Health provides a health and wellness platform.

Analysts have a rosy outlook on the telehealth provider's profits. In 2025, they see earnings rising 137% to 66 cents per share. In 2026, they also see that trend continuing with earnings growing 46% to 97 cents per share.

Shares are approaching a trendline entry near 65.89. The stock holds an ideal Relative Strength Rating of 99. The Composite Rating of 99 is also the best score in its group. Its Earnings Per Share Rating meets the recommended minimum threshold of 80.

Funds Load Up On Hims Stock

Institutional support is strong. Mutual funds own 55% of outstanding shares, and more funds have been adding the stock to their holdings over the past five quarters. Institutions have also been strong buyers over the past 13 weeks, giving Hims & Hers Health stock the best possible Accumulation/Distribution Rating of A+.

Demand for the stock has surged in the past 50 days as well with the Up/Down Volume Ratio sitting at 2.1. Further, on IBD MarketSurge, the ants indicator shows that the recent rally was likely due to institutional participation.

Hims stock ranks first in the medical services group, according to IBD Stock Checkup. The group holds 18th place among Investor's Business Daily's 197 industry groups.

Shares listed on the New York Stock Exchange on Jan. 21, 2021, at an initial offering of $17 per share.

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