A number of stocks jumped in the afternoon session after a Politico report revealed that the White House plans to pitch a two-year extension of Obamacare subsidies. The proposal would extend subsidies set to expire at the end of the year, with new eligibility limits for individuals with incomes up to 700% of the federal poverty line. These subsidies, a key part of the Affordable Care Act (ACA), help lower the cost of health insurance for consumers, making them crucial for insurers focused on the ACA marketplace. An extension would likely support sustained enrollment, securing a key revenue stream for these companies.
Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings.
However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.
A surplus of cash can mean financial stability, but it can also indicate a reluctance (or inability) to invest in growth.
Some of these companies also face challenges like stagnating revenue, declining market share, or limited scalability.
KeyCorp, through its KeyBanc capital markets division, has issued a significantly more pessimistic forecast for LifeMD (NASDAQ: LFMD) stock, dramatically lowering its price objective to $8.00 from a previous $12.00. This downgrade reflects growing concerns over the telehealth company's financial performance, operational efficiency, and competitive landscape. The immediate
Shares of telehealth company Hims & Hers Health (NYSE:HIMS) fell 4.9% in the afternoon session after news of increased competition in the weight-loss drug market overshadowed the company’s own positive announcements.
Personal health and wellness is one of the many secular tailwinds for healthcare companies. But financial performance has lagged recently as players offloaded surplus COVID inventories in 2023 and 2024, a headwind for overall demand.
The result? Over the past six months, the industry’s 11.6% return has trailed the S&P 500 by 4.7 percentage points.
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how healthcare technology stocks fared in Q3, starting with Hims & Hers Health (NYSE:HIMS).
Hims & Hers Health’s third quarter results prompted a positive market reaction as the company delivered strong revenue growth driven by surging demand for personalized care, new specialty launches, and expanding international reach. Management credited its vertically integrated compounding infrastructure and the transition to multi-condition daily treatments for fueling scale and efficiency. CEO Andrew Dudum highlighted that “subscribers using personalized solutions grew 50% year-over-year,” underscoring the company’s evolution from serving narrow health needs to supporting a broad array of conditions. The company’s ability to leverage its growing customer base for improved engagement and operational learnings featured prominently in its assessment of the quarter.
