HIMS is a buy for high-risk-tolerance long-term investors due to strong growth prospects and fair valuation.

Hims & Hers management team reiterated its longer-term guidance to investors. The management team is forecasting at least $6.5 billion in revenue by 2030 and $1.3 billion in adjusted earnings before interest, taxes, depreciation, and amortization.

But does this make Hims & Hers stock a buying opportunity for long-term investors? So, revenue of at least $6 billion by 2030 would be more than double their most recent trailing 12-month total.

In that period, Hims & Hers reported $2.6 billion in revenue. That's up from around $250 million in 2020. This has been one of the fastest-growing companies in the world.

The business is increasing by adding new products and increasing customers. They surpassed a huge milestone of over 3 million members. The acquisition of Eucalyptus has allowed the company to expand internationally robustly with growth in that category increasing by over 10x compared to the same quarter last year.

This is where Hims & Hers is stepping in and hitting that category and growing rapidly.

Now, the increase in revenue is also helping the company achieve profitability on the bottom line. Although profitability on the bottom line is not as consistent as investors would hope.

It's been volatile, up and down, and in the most recent period, profitability in terms of operating profit margin was flat. That's down from about 8% in 2025.

Hims & Hers is investing in preparation for FDA approval of peptides, perhaps coming later this year. And so, some of those investments are hitting the company on the bottom line.

It's also investing a larger percentage in marketing to reach new customers and let customers know about its availability and services and products it offers.

Returns on invested capital have been similarly volatile. After reaching a peak nearly 35% in 2025, its returns on invested capital turned negative at 8.44%. And similar things happened in 2021 where the company's returns on invested capital dropped as low as -35% before soaring up to 35% and now falling back down.

So, just like their operating profit margin, returns on invested capital are volatile. And I think investors can expect more of the same in this category, ups and downs until the company reaches larger scale where new product developments and removal of product offerings don't impact the business as largely as they're now impacting the business.

Of course, if the company does hit that target of adjusted EBITDA expectations of over a billion dollars by 2030, that'll go a long way in improving the company's overall profitability and profit margins.

Valuation has also been choppy, but in the most recent period, its forward price-to-earnings ratio fell to 35. This is near the lower end of where this stock has traded for according to this valuation metric.

But again, volatility in this metric is both on the numerator and the denominator. It's market price has been volatile, fluctuating significantly up and down. Additionally, its earnings per share have been volatile, fluctuating violently up and down.

So when you have both the numerator and denominator signific- signifying volatility, that's going to create volatility in the overall metric.

So Hims & Hers is on the riskier end of stocks you can buy in the marketplace, especially on the riskier end of healthcare stocks or pharmaceutical stocks, where I think Hims & Hers is in the middle of those categories.

It boasts a beta of 2.4, while many healthcare companies and pharmaceutical companies boast a beta of less than one, some even boast a beta of less than 0.5. So for a pharmaceutical/healthcare company to trade with a beta of 2.4 is volatile, to be sure.

But all that being said, I calculated a fair value for this stock at $27.50, which is right about where the current market price is at $28.80. So whether I'm measuring on a forward price to earnings basis or whether I'm measuring on a discounted cash flow basis, Hims & Hers stock looks fairly valued.

So given its significant growth opportunity and the growth that it's already demonstrated, and the category that I think is ripe for disruption, I'm ranking Hims & Hers stock as a buying opportunity for long-term investors that have a higher risk tolerance.

This stock shouldn't be considered for investors that don't have a risk tolerance. I don't want investors in healthcare companies and pharmaceutical companies to confuse Hims & Hers in that same category in terms of riskiness.

So, if you're an investor in those companies, it doesn't necessarily mean you should be an investor in this company. This should only be considered for investors that have a high risk tolerance.

But, if you do, then I think it's an attractive opportunity when considering risk versus reward.