Why I’m Buying This 'Controversial' Stock Despite a Fragile Market
Wall Street gave up on the name, but here's what makes it interesting now. Plus, another TACO move, and another test of the close.
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The market opened strongly higher as President Trump triggered another TACO trade with comments that the U.S. would not aggressively pursue taking control of the Strait of Hormuz. The spin is that this could help accelerate negotiations, but oil has barely budged on the news. Many investors are wondering why this qualifies as a positive development.
As I write, the buying momentum is already losing steam. Breadth is still good with 75% of stocks in positive territory and the indexes showing big gains, but it is the close that matters. We need a strong close as a signal that a shift in momentum is occurring. If that doesn't happen, it will turn into just another failed bounce and push more investors to the sidelines.
These are not market conditions I want to rush into, but I'm looking harder for new positions that I can take preliminary stakes in. Monday I discussed Circle Internet Group (CRCL) . Today I'm buying Hims & Hers Health (HIMS) .
What Hims & Hers Is and How It Got Here
One of the more controversial stocks in the market over the past year is Hims & Hers Health. The company attracted aggressive traders who bought HIMS as it chased large profits by selling a compounded version of GLP-1 weight loss drugs that did not require FDA approval. The stock plunged earlier this year from the $60s to as low as $14 after the FDA cracked down on the mass compounding of GLP-1 drugs.
The stock was wallowing at the lows when on March 9, 2026, it suddenly pivoted by partnering with Novo Nordisk (NVO) to become an authorized distributor of branded Ozempic and Wegovy. By phasing out the aggressive marketing of compounded GLP-1s in favor of branded versions, Hims has significantly reduced its regulatory risk.
What Makes It Interesting Now
What just caught my attention is the business that remains a major asset after that pivot. Hims retains its massive scale and vertical integration in the personalized compounding market for areas well outside of weight loss.
Unlike branded drugs where HIMS acts as a middleman, its compounded peptides for hair loss, skincare, and hormone health are proprietary formulations. That matters for two reasons. The company controls manufacturing in its own one-million-square-foot facility, which protects margins. And patients cannot easily transfer a custom-compounded prescription to a local pharmacy, which creates a sticky subscription revenue model that is difficult for competitors to disrupt.
The Peptide Catalyst
What caught my eye most recently is news that the FDA and HHS are lifting restrictions on 14 peptides, including BPC-157 and AOD-9604. This is a significant potential catalyst for HIMS. The company is already set up to integrate these peptides into its existing men's health and women's health lines, and with its infrastructure already in place it can move faster than most competitors to roll out pharmaceutical-grade compounded versions.
The shift to branded weight loss drugs provides stability. The focus on non-weight loss compounded peptides provides growth and margin. By surrendering the GLP-1 fight, Hims has earned the right to build its compounding business without the constant threat of regulatory shutdown.
It isn't time to be an aggressive buyer in this difficult market, but I started a position in HIMS today and will be adding to it.
Related: This TACO Might Give You Indigestion
At the time of publication, Rev Shark was long HIMS.
