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These 2 Growth Stocks Are No-Brainer Buys Right Now

Mon Jun 16, 2025
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Geoffrey Seiler, The Motley Fool

6 min read

In This Article:

  • Hims & Hers has been able to distinguish itself in a crowded field with its personalization strategy.

  • SoundHound AI is a voice AI leader moving into agentic AI.

  • Both stocks have huge opportunities still in front of them.

  • 10 stocks we like better than Hims & Hers Health ›

When it comes to investing, sometimes you want to take a big swing. After all, it's not always the number of winners in your portfolio that power your returns, but finding a few stocks that can be massive winners over time.

Let's look at two no-brainer growth stocks that fit that bill.

Hims & Hers Health (NYSE: HIMS) has quietly been not just one of the fastest-growing names in telemedicine, but in the entire market. In 2022, it grew its revenue by 94%, followed by 65% growth in 2023 and 69% in 2024. That momentum carried into the first quarter of this year, with revenue surging 111% and its subscriber base jumping 38% to 2.4 million. Meanwhile, this isn't just about top-line growth, its profitability and cash flows are also soaring. Last quarter, its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) nearly tripled year over year, while its adjusted earnings per share (EPS) and operating cash flow quadrupled.

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The company has built a sticky, high-margin recurring business model across men's and women's health, thanks largely to personalized subscriptions. Last quarter, nearly 60% of its subscribers used at least one personalized treatment, up from just 35% last year. The company sees this as a key driver going forward and is expanding personalized offerings across categories like low testosterone, menopause, and preventative health. It's a smart strategy to create a moat in a crowded business that otherwise would have minimal differentiation.

The company's biggest opportunity, however, is in weight loss drugs. Hims has gone from entering the GLP-1 market a year ago to now projecting $725 million in weight-loss drug revenue this year alone. That's a massive new revenue stream. While the category comes with a lower gross margin, it's fueling tremendous growth in overall gross profit dollars and helping the company add new customers.

The company is also evolving its weight loss strategy. After using a loophole to sell compounded versions of GLP-1 drugs like semaglutide at lower prices than branded drugs, Hims & Hers is now shifting toward selling branded GLP-1 drugs. It's partnered with Novo Nordisk to sell a Wegovy-branded weight loss drug, while it has also started selling Eli Lilly's Zepbound and Mounjaro GLP-1 drugs. It also added the generic drug liraglutide to its platform. Hims couldn't sell compounded GLP-1 drugs forever, but it's smartly pivoted to be able to still capture this huge opportunity.