Winning stocks have been hard to come by lately, but Hims & Hers Health (HIMS 0.34%) has been exactly that. The stock's more than doubled in just three months.

A 100% move is enormous, but the stock comes from such a beaten-down price that the good times might not be over. Here is why Hims & Hers remains a bargain worth considering today.

Is the party just starting?

The stock made a big move in a short amount of time. Shares are up 109% over the past three months. But you can see below that the stock is still a long way from where it once traded, down 70% from its high, despite the recent comeback.

That reflects in the stock's price-to-sales ratio (P/S). It currently sits at just under 4, and briefly reached as high as 12 at one point. But you can't assume that Hims & Hers will keep climbing simply because the stock once traded at a higher price -- stocks don't remember where they used to trade.

Instead, you can look to the company's fundamentals to see whether the business will grow and execute enough to earn a higher price from the market. Fortunately for investors, the company is doing its part to win Wall Street over.

The business is hitting a new level

A euphoric market in 2021 likely inflated Hims & Hers to a lofty valuation that it may never see again. But that's fine; the stock can be an excellent investment moving forward, even if it trades at a P/S of 4 indefinitely.

Hims & Hers just turned in 87% year-over-year revenue growth in the second quarter of 2022, and you can see below that this is part of a longer-term trend where growth is accelerating. The company launched its smartphone apps at the beginning of the year, and that's seemingly played a role in boosting its growth.

Chart showing Hims & Hers quarterly and TTM revenue rising overall since early 2021, with recent fall in quarterly.

HIMS Revenue (Quarterly YoY Growth) data by YCharts.

Management doesn't expect the momentum to stop. It raised full-2022 revenue guidance to between $470 million and $485 million. This is the second time management has raised guidance; it initially set the bar for 2022 at $365 million to $385 million, then raised it to $410 million to $425 million in the first quarter.

Doing the math, revenue guidance has already climbed 33% from the low end of its initial guidance just six months earlier. Hims & Hers hasn't been a public company long, but it's establishing an excellent track record of underpromising and overdelivering.

That's why Hims & Hers could generate strong investment returns, even if it stays at a constant P/S -- the growth could force the share price higher over time. 

A massive market with room to grow

The company still has just 817,000 subscriptions against a U.S. population that holds roughly 140 million people among millennials and Generation Z, the age groups that Hims & Hers targets.

There is room for the company to multiply its subscription base over the coming years, which doesn't even factor in potential international markets. Healthcare is a competitive space, and other competitors are already out there. However, Hims & Hers' stellar growth speaks volumes about the company's resilience in the face of competition.