HIMS Stock Falls Despite Latest Deal to Expand International Footprint

Hims & Hers Health, Inc. HIMS announced its agreement to acquire ZAVA, a digital health platform in Europe. The deal, which marks a significant step toward its global expansion, will likely expand HIMS’ footprint in the U.K. and will officially launch the company into Germany, France and Ireland, with more markets anticipated soon.The acquisition is expected to close in the second half of 2025, and the deal is expected to be accretive by 2026.Hims & Hers is also planning to introduce a new, personalized dimension of digital health in Europe. Through this, the company aims to provide individuals with access to care tailored to their specific needs and goals across dermatology, weight loss, sexual health and mental health. To ensure a localized experience, this expansion is also expected to include access to British, German and French healthcare providers in local languages. Hims & Hers expects to share more about the offerings and their rollout in the coming months.The latest acquisition and subsequent expansion in the European markets are expected to significantly solidify HIMS’ international footprint.Likely Trend of HIMS Stock Following the NewsFollowing the announcement, shares of the company lost nearly 3.6% till yesterday’s closing.Historically, the company has gained synergies from its various strategic buyouts. Although the latest deal is likely to be beneficial for HIMS’ top-line growth going forward, the stock declined overall.Hims & Hers currently has a market capitalization of $12.25 billion. It has an earnings yield of 1.3%, favorable than the industry’s negative yield. In the last reported quarter, HIMS delivered an earnings surprise of 66.7%.Rationale Behind Hims & Hers’ BuyoutHims & Hers aims to establish its own branded presence, leveraging the ZAVA platform in each of the European markets in the coming quarters and strengthening its digital health offerings on a global scale. It is worth mentioning that ZAVA, which currently serves more than 1.3 million active customers, has an in-house medical team that delivered nearly 2.3 million consultations in 2024 across the U.K., Germany, France and Ireland.Hims & Hers’ management expects to leverage ZAVA's established European presence to transform access to care for people across Europe battling widespread, often silent chronic conditions like obesity and depression.Industry Prospects in Favor of HIMSPer a report by Grand View Research, the global digital health market was estimated at $288.55 billion in 2024 and is anticipated to witness a CAGR of 22.2% between 2025 and 2030. Factors like the rising incidence of chronic conditions fueling the demand for remote monitoring and management solutions, and technological advancements are likely to drive the market.Given the market potential, the latest buyout is expected to be a significant milestone for Hims & Hers and boost its business globally.Hims & Hers’ Notable AcquisitionsIn February, Hims & Hers acquired a U.S.-based peptide facility based in California. The buyout will likely enable the company to strengthen the long-term durability of its domestic supply chain to meet the growing demand from Americans for personalized healthcare and treatment options.The same month, Hims & Hers acquired an at-home lab testing facility, Sigmund NJ LLC, which is marketed as Trybe Labs. The buyout will likely enable HIMS to support at-home blood draws and more comprehensive whole-body testing. The acquisition is also expected to broaden the company’s ability to offer a wide range of personalized treatments, supplements and medications and accelerate the expansion into new clinical categories, including low testosterone, perimenopausal and menopausal support.HIMS’ Share Price PerformanceShares of the company have surged 154.1% in the past year compared with the industry’s 33.8% rise and the S&P 500’s gain of 11.4%.Image Source: Zacks Investment ResearchHims & Hers’ Zacks Rank & Other Key PicksCurrently, HIMS carries a Zacks Rank #2 (Buy).A few other top-ranked stocks in the broader medical space are HealthEquity, Inc. HQY, Cencora, Inc. COR and Integer Holdings Corporation ITGR.HealthEquity, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 20.3%. HQY’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 12.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.HealthEquity’s shares have gained 34.9% against the industry’s 21.7% decline in the past year.Cencora, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 12.8%. COR’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6%.Cencora has rallied 25.3% against the industry’s 21.7% decline in the past year.Integer Holdings, sporting a Zacks Rank of 1 at present, has an estimated long-term growth rate of 18.4%. ITGR’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 2.8%.Integer Holdings’ shares have lost 0.7% compared with the industry’s 13.2% plunge in the past year.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Cencora, Inc. (COR): Free Stock Analysis Report HealthEquity, Inc. (HQY): Free Stock Analysis Report Integer Holdings Corporation (ITGR): Free Stock Analysis Report Hims & Hers Health, Inc. (HIMS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks