Move Over Hims & Hers Health: This Insurance Business Could Be the Next Monster Healthcare Stock (Hint: It's Not UnitedHealth)
Hims & Hers Health shares rocketed higher over the last year, rewarding investors.
When it comes to healthcare stocks, many investors pay attention to the usual suspects: Eli Lilly, Novo Nordisk, CVS Health, or Johnson & Johnson. These companies have built up enormous brand equity thanks to blockbuster drugs and widely recognized pharmacy management services.
With the exception of CVS, whose shares have risen 46% so far this year, none of the other companies have generated robust stock price returns so far in 2025. Lilly, Novo, and Johnson & Johnson are seeing share price pressure over concerns that President Donald Trump's administrative actions could impact the pharmaceutical industry -- particularly as it relates to tariffs and medication pricing.
One healthcare player that is (so far) outmaneuvering investor trepidation throughout 2025 is telemedicine company Hims & Hers Health (NYSE: HIMS). Its share price is up 138% in 2025 (as of June 17). While buying into Hims and Hers stock to follow the momentum is tempting, I think a different, dirt cheap health insurance stock is positioned for a breakout akin to Hims & Hers Health. And no, I'm not talking about the beaten-down UnitedHealth Group.
