Hims & Hers Health Stock Flashing Buy Signal Before Earnings

After a late-May bull gap on the charts, healthcare stock Hims & Hers Health Inc (NYSE:HIMS) steadily worked higher to snag a record high of $25.74 on June 18. Since then, the stock has traded choppily as the company prepares for its second-quarter earnings call, due out after the market closes on Monday, Aug. 5.

However, HIMS' most recent dip on the charts has it flashing a bullish signal. According to a study from Schaeffer's Senior Quantitative Analyst Rocky White, HIMS is within one standard deviation of its 50-day moving average, after trading north of this trendline 80% of the time in the past two months, and in eight of the past 10 trading days.

Per White's data, Hims & Hers Health stock experienced five similar signals over the last three years, after which the stock was higher one month later 80% of the time, averaging an impressive gain of 12%. A move of comparable magnitude would put the shares at $24.38, just below their aforementioned all-time high and add to their 144.4% year-to-date lead.

Looking back at its last eight post-earnings sessions, HIMS tends to make outsized moves. The equity bounced after five of its last eight reports, including 31% gain in February and a more modest 6% win after its May results. Over the last two years, the security averaged a 12.8% move, regardless of direction, and the options pits are pricing in a nearly double 23.9% post-earnings swing this time around.

It's also worth noting that short interest jumped 16.5% over the last two reporting periods. The 19.81 million shares sold short now account for 11.2% of HIMS' total available float.