Why Hims and Hers Health is a Buy, and Why You Should Avoid Nvidia Stock
Hims and Hers Health, an online provider of men’s and women’s health products, has caught the attention of Catalyst Funds Co-Founder, CIO, and Senior Portfolio Manager David Miller. In a recent interview with Yahoo Finance’s Julie Hyman, Miller shared his bullish case for the company and why it’s become one of his top stock picks. Additionally, Miller warns investors to avoid Nvidia stock due to its high valuation and potential for competition in the future.
🩺 Hims and Hers Health: A Grower with Massive Revenue Growth and Profitability
– Hims and Hers Health went public in 2019 as part of a SPAC and has seen excellent year-to-date growth.
– The company’s revenue has grown by 47%, even when the stock has declined, thanks to its massive growth and margins.
– Hims and Hers Health is now profitable, which is new to the company, and Miller anticipates it will continue to be consistent.
– The company provides a solution to three significant healthcare problems: it avoids the embarrassment of going to a doctor’s office, saves time and money, and ships products conveniently to one’s home.
– The potential risks include changing regulations and competition from another startup called Ro.
👎 Why Avoid Nvidia Stock
– Nvidia stock is becoming overpriced, and the company needs to justify its $2 trillion valuations by maintaining its current growth.
– Semiconductors are cyclical and a commodity business, and Nvidia might not be exempt from future volatility.
– Nvidia’s Blackwell chip will face tough competition in the future.
– Avoiding Nvidia does not mean shorting the stock; Miller suggests investors find other ways to play the AI growth trend.
📈 Summing Up Miller’s Stock Advice
– Miller recommends buying Hims and Hers Health stock due to its profitability, growth in revenue, and benefits to customers?
– Investors should avoid Nvidia because it is overpriced, subject to future market volatility, and faces stiff competition.
– Investors should watch out for upcoming changes in regulations and competition from other firms.
By
By
By
By
By