Healthcare Stock Could Be Good 'Buy the Dip' Play

The shares of healthcare name Hims & Hers Health Inc (NYSE:HIMS) person retreated from their Feb. 19, pre-earnings all-time high of $72.98. The banal has shed 11.9% truthful acold this month, and is connected way for its 4th nonaccomplishment successful 5 sessions, past seen down 0.7% astatine $40.18. Despite this pullback, humanities information suggests the information whitethorn beryllium primed for a rebound.

Per a caller survey from Schaeffer's Senior Quantitative Analyst Rocky White, HIMS is present wrong 1 modular deviation of its 50-day moving average. Shares person traded northbound of this trendline 80% of the clip implicit the past 2 months and successful 8 of the past 10 trading days.

Similar pullbacks person historically led to beardown short-term upside, with past instances resulting successful a one-month summation 71% of the time, averaging a 10.6% return. A comparable determination would enactment Hims & Hers Health stock adjacent $44, extending its awesome 176.3% year-over-year lead.

Short sellers are backing off, with abbreviated involvement down 20.8% successful the past reporting period. However, the 46.12 cardinal shares sold abbreviated relationship for 24.6% of the equity's disposable float, indicating there's inactive country for a abbreviated squeeze. Analysts stay cautious, leaving country for upgrades to enactment arsenic a bullish catalyst arsenic well, with 9 of 14 covering firms maintaining a "hold" oregon worse standing connected HIMS.

Options traders besides thin bearish, with Hims & Hers Health stock's Schaeffer's put/call unfastened involvement ratio (SOIR) of 1.47 sitting successful the 94th percentile of readings from the past month. Echoing this, the equity's 50-day put/call measurement ratio of 1.14 astatine the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks successful the 99th percentile of its yearly range.

HIMS has consistently exceeded options traders' volatility expectations, arsenic reflected successful its Schaeffer’s Volatility Scorecard (SVS) score of 90 retired of 100. This metric suggests the banal has historically delivered larger-than-expected terms swings.