The Bull Market is Back: 3 Stocks to Buy Now (HIMS, APP, META)

Zacks reports that bullish momentum has returned to the market, highlighting Hims & Hers Health (HIMS), AppLovin (APP), and Meta Platforms (META) as stocks with strong fundamentals and breakout potential. AppLovin's FY25 and FY26 estimates have been revised upwards by 22% and 26.4%, respectively, earning it a Zacks Rank #1 (Strong Buy), while Hims & Hers Health is projected to grow earnings at a 36.5% compound annual rate, driven by expansion into weight-loss treatments. Meta Platforms is leveraging AI to automate its advertising platform, projecting 16.1% annual earnings growth, and remains well-positioned among the "Magnificent 7."

Analysis

Renewed bullish momentum is evident in the market, supported by moderating tariff policies, rebounding economic growth forecasts, and accelerating AI-driven productivity gains, fostering an environment of increased investor risk appetite. Within this context, Hims & Hers Health (HIMS), AppLovin (APP), and Meta Platforms (META) are highlighted as companies with strong fundamentals, emergent business models, and powerful technical momentum. AppLovin, a mobile marketing technology firm, holds a Zacks Rank #1 (Strong Buy), reflecting substantial upward revisions to its consensus earnings estimates, with FY25 figures up by 22% and FY26 by 26.4%; the stock is currently consolidating below a key $400 resistance level, with a decisive move above suggesting further potential upside. Hims & Hers Health, a direct-to-consumer digital health company, is projected to achieve a compound annual earnings growth rate of 36.5% over the next three to five years, significantly driven by its strategic expansion into the burgeoning GLP-1 weight-loss treatment market. HIMS also boasts a Zacks Rank #2 (Buy), supported by recent EPS estimate increases, including a 21.4% surge for the current quarter, and its stock is in breakout mode moving towards all-time highs. Meta Platforms continues to innovate, particularly with its AI-powered advertising platform, which is expected to be fully automated by year-end, contributing to a projected 16.1% annual earnings growth over the next three to five years. Despite a Zacks Rank #3 (Hold) due to mixed recent analyst revisions, META trades at 25.4x forward earnings, aligning with its historical median, and recently experienced a technical breakout on positive AI news. These three companies, operating in distinct industries, share common traits of accelerating earnings momentum and heightened investor demand, positioning them as appealing investments in the current market climate.

Key Decisions for Investors

• Given the renewed bullish market sentiment, investors should consider allocating capital towards companies demonstrating strong fundamental growth and positive technical setups, such as Hims & Hers Health, AppLovin, and Meta Platforms.
• AppLovin (APP) warrants evaluation for potential investment, considering its Zacks Rank #1 (Strong Buy), significant upward earnings revisions for FY25 (+22%) and FY26 (+26.4%), and its technical posture near a key breakout level above $400.
• Hims & Hers Health (HIMS) presents a compelling growth opportunity, underscored by its projected 36.5% compound annual earnings growth rate fueled by its entry into the GLP-1 market and its Zacks Rank #2 (Buy) status reflecting strong earnings upgrade momentum.
• Investors should monitor Meta Platforms (META) for its advancements in AI-driven advertising and its projected 16.1% annual earnings growth, while noting its current Zacks Rank #3 (Hold) and its valuation at 25.4x forward earnings, which is in line with historical levels.
• Portfolios seeking to capitalize on current market leadership could benefit from examining these companies, which exhibit accelerating earnings momentum and alignment with powerful long-term themes such as artificial intelligence and digital health.