Forget Hims. Its CEO Dumped 436,000 Shares Before a 1,266% Earnings Miss. Here Is the Profitable Healthcare Stock to Own Instead

2 days ago 3

Alex Sirois

Mon, May 18, 2026 astatine 8:22 AM CDT 4 min read

Quick Read

Hims & Hers (HIMS) reported Q1 2026 EPS of -$0.40 versus $0.03 consensus, a nett nonaccomplishment of $92.11M, gross borderline compression to 65% from 73%, and a collapsing 7% adjusted EBITDA margin, with the halfway U.S. concern contracting 8% twelvemonth implicit year. Doximity (DOCS) delivered $185.05M gross up 9.8% with a 60.2% adjusted EBITDA borderline and $61.56M nett income, serving 1M+ quarterly progressive prescribers portion increasing AI products 50% 4th implicit quarter.
Hims’ GLP-1 churn and consumer-dependent concern exemplary produced a 1,266% net miss with insider selling and mounting convertible debt, portion Doximity’s doc level web generates sustainable currency travel and is returning superior via a $500M stock repurchase authorization.
The expert who called NVIDIA successful 2010 conscionable named his apical 10 stocks and Doximity wasn't 1 of them. Get them present FREE.

Hims & Hers (NYSE:HIMS) is dominating headlines this week due to the fact that the GLP-1 darling conscionable delivered 1 of the ugliest quarters successful the telehealth sector's abbreviated history, and bargain hunters are circling the wreckage. But here's what you should really beryllium watching.

The Q1 2026 merchandise connected May 11, 2026 was a fracture. EPS came successful astatine -$0.40 against a $0.03 consensus, a 1,266% miss, with a nett nonaccomplishment of $92.11 cardinal versus nett income of $49.48 cardinal a twelvemonth earlier. GAAP gross borderline compressed to 65% from 73%, and adjusted EBITDA collapsed to a 7% margin. The U.S. business, the existent core, shrank 8% twelvemonth implicit year. Shares fell 14.1% connected the time to $25.03, capping a 54.66% one-year decline.

The valuation remains stretched adjacent aft the drop. Even aft the fall, Hims trades astatine a trailing P/E of 57 and a guardant P/E of 67, with an operating borderline of -12.9%. Total liabilities ballooned 431% twelvemonth implicit twelvemonth to $1.82 billion, freighted with astir $1 cardinal of convertible debt. The C-suite has voted with its feet: CEO Andrew Dudum disposed of 436,190 shares astatine $24.77 connected April 13, and the CFO, COO, and Chief Legal Officer each dumped banal successful the weeks earlier the net release.

The expert who called NVIDIA successful 2010 conscionable named his apical 10 stocks and Doximity wasn't 1 of them. Get them present FREE.

The Redirect: A Profitable Physician Network

The smarter rotation is Doximity (NYSE:DOCS), the LinkedIn for U.S. physicians, present trading astatine $26.45 with a $3.54 cardinal marketplace cap. Three reasons it deserves the attraction HIMS is hogging.

One: existent profits. Fiscal Q3 2026, reported February 5, 2026, delivered gross of $185.05 million, up 9.8% twelvemonth implicit year, with adjusted EBITDA of $111.40 cardinal astatine a 60.2% borderline and nett income of $61.56 million. Compare that 60% borderline to the 7% Hims conscionable posted portion burning $33 cardinal connected GLP-1 restructuring.

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