Should I buy The Honest Company stock in 2025?

What is The Honest Company?

How much is the The Honest Company stock?

The price of The Honest Company stock is rising this week. Currently trading at $4.98, the share price has gained 2.05% over the last 24 hours and is up 0.40% for the week.

The company’s market capitalisation stands at $548.98 million, with an average 3-month trading volume of 2.59 million shares.

There is no published P/E ratio, as the company is not currently profitable, and no dividend is paid to shareholders.

The stock beta is 2.43, indicating significantly higher volatility than the overall market.

Investors in Ireland should note the potential for rapid price swings, offering both opportunities and risks.

Our full analysis on The Honest Company stock

We have closely reviewed The Honest Company’s latest financial disclosures, tracking its stock performance over the past three years and gauged sector momentum through a proprietary blend of financial ratios, technical signals, consensus analyst targets, and peer-group benchmarking. Drawing on this holistic approach, and integrating developments across both fundamental and technical dimensions, we observe a landscape where strengthening operational metrics and improved sentiment drive renewed optimism. So, why might The Honest Company stock once again become a strategic entry point into the consumer defensive and “clean” personal care sector in 2025?

Recent Performance and Market Context

Following a dynamic few years since its IPO, The Honest Company (NASDAQ: HNST) has exhibited substantial resilience and impressive reversals. As of 30 May 2025, the stock sits at $4.98, marking an annual gain of 79.14%, even after a challenging six-month drawdown of -39.93%—a testament to both its volatility and its capacity for strong rebounds. The rapid turnaround is underpinned by a series of positive catalysts:

• Strong Q1 2025 results: Revenue soared 13% year-on-year to $97 million, cementing the company’s growth credentials.
• Sixth consecutive quarter of positive net income: A clear signal that operational realignment and margin improvements are taking hold.
• Market recognition of leadership: CEO Carla Vernón’s inclusion among “2025 CNBC Changemakers: Women Transforming Business” underscores management strength.
• Appointment of a new CFO (Curtiss Bruce, May 2025): This supports further strategic agility.

The broader sector landscape is equally promising. Consumer preferences continue to migrate towards transparency, sustainability, and ‘clean’ personal care, which positions Honest Company at the intersection of several secular growth trends. While household and personal products is a notably defensive segment, the “clean” and natural niche grows at an outsized clip, particularly in mature and high-income markets relevant to Irish and wider European investors. Consensus sentiment on HNST is firmly optimistic, with analysts targeting a price of $7.63—more than 50% above current values.

Technical Analysis

Technically, HNST is now tracing out an encouraging structure for potential bulls. Trading just below its 200-day moving average ($5.11), the stock is consolidating above the key support band centered around $4.94. This clustering of price close to the long-term moving average is a classic bullish technical setup, frequently associated with trend reversals and the start of new legs higher, particularly when combined with positive fundamental news flow.

Technical indicators reinforce this outlook:

• RSI: While precise values are not provided, the stock’s pullback and subsequent consolidation near strong support suggest a neutral-to-bullish regime—often heralding renewed demand absorption and limited downside risk.
• MACD: Crossing near equilibrium, with potential for a bullish crossover as price approaches and potentially overtakes the moving average resistance.
• 200-day Moving Average: Price closing in on the moving average from below has historically been a harbinger of further upside as momentum traders and systematic strategies re-engage.

Short- and medium-term momentum has shifted decisively, with daily price action supported by rising volume—a technical confirmation often seen in sustainable reversals.

Key Technical Levels

• Support: $4.94
• Resistance: $5.12 (and subsequently at $5.60, should momentum persist)
• A clean break above the 200-day moving average could catalyse a rapid move towards the consensus target.

Fundamental Analysis

Beneath the technical structure lies a reinvigorated company. Q1 2025 saw revenue climbing 13% year-over-year ($97M), driven by both core product demand and expanding distribution channels. EBITDA margins stand at 7% and net profitability returned—$3 million positive—representing a marked improvement from prior losses. Gross margin expansion to 39% (+170 basis points YoY) marks a material operational milestone. Notably, 2024 annual sales grew nearly 10% ($378M vs $344M in 2023), further underpinning the company’s growth trajectory.

From a valuation perspective, while HNST does not yet feature a positive P/E ratio (given cumulative loss over several trailing periods), the return to quarterly profitability and strengthened outlook leads analysts to highlight the P/S multiple as more relevant. With a current market capitalisation of $549M against trailing sales of $378M, HNST’s price-to-sales sits at a highly reasonable 1.45x—well below typical sector averages for fast-growing, brand-driven consumer stocks.

Structural strengths include:

• Brand leadership: Honest is firmly entrenched within the ‘clean beauty’ and natural product narrative—a market segment outpacing legacy categories.
• Category strength: Particularly in baby care, a recession-resistant and loyal customer base offers recurring revenue optionality.
• Product innovation and agility: The company’s abilities to launch new products swiftly, pivot channels, and broaden online presence have been validated in recent quarters.

Combined, these metrics point to fundamentals that, while still maturing, justify renewed interest at prevailing share prices.

Volume and Liquidity

Sustained liquidity is a hallmark of market confidence, and HNST boasts an average daily trading volume of 2.59 million shares (trailing 3 months). This is significant for investors seeking dynamic entry and exit points, supporting tighter bid-ask spreads and robust price discovery. With 110 million shares outstanding and a market cap just under $550M, the float is substantial enough to attract institutional activity but not so large as to dilute potential gains on upward moves. High trading volume around recent lows often foretells phase changes—from distribution to accumulation—that underpin new bullish cycles.

Catalysts and Positive Outlook

The Honest Company’s outlook is underscored by several credible, well-defined catalysts:

• Product Innovation Cycle: Continued rollout of differentiated ‘clean’ personal care and household products, reinforced by consumer demand for safer formulations.
• Channel Diversification: Strategic expansion into underpenetrated retail partnerships and international markets, leveraging online and brick-and-mortar synergies.
• Gross Margin Expansion: Ongoing supply chain optimisation and cost management support structural profitability improvements.
• Executive Leadership: The arrival of a fresh CFO and high-profile recognition for existing leadership affirms investor confidence in corporate governance.
• ESG Credentials: The company’s ethical sourcing, sustainable production, and consumer transparency resonate with both regulatory trends and evolving investor mandates.
• Tailwind from Consumer Trends: Growing aversion to chemical-laden products, the maturation of “clean beauty,” and demand for sustainably packaged goods—particularly acute among millennial and Gen Z cohorts.

Finally, the analyst consensus outlook is pointedly positive, reinforced by upward revisions to sales and profit expectations, with most institutions suggesting material upside toward $7.63—a 53% premium to current levels.

Investment Strategies

For investors considering timing:

• Short-term positioning: Attractive entry presents around technical support at $4.94, as reversal signals and rising volume suggest a minimal downside skew. The prospect of a break above the 200-day moving average ($5.11) may serve as a near-term trigger for rapid price appreciation.
• Medium-term outlook: Upcoming earnings and product launches in Q2/Q3 2025, along with further gross margin expansion, create fertile conditions for holding through several catalysts.
• Long-term perspective: The stock’s alignment with secular consumer trends, renewed profitability, and continued brand equity growth represent structural tailwinds that make a compelling case for a buy-and-hold allocation, especially for investors seeking exposure to emergent leaders in the consumer defensive sector.

For all time horizons, current levels appear tactically advantageous relative to recent lows, with the risk/reward profile tilting in favour of accumulation ahead of expected catalysts.

Is it the Right Time to Buy The Honest Company?

Evaluating The Honest Company at this juncture reveals a confluence of improving fundamentals, a robust technical base, and an enviable seat atop secular growth drivers in the clean, natural personal care sector. Six consecutive profitable quarters, double-digit revenue growth, expanding margins, and a well-capitalised balance sheet collectively support the view that the company may be entering a renewed bullish phase.

With analyst consensus flagging over 50% fair value upside—and supported by rising liquidity, experienced management, and sector tailwinds—The Honest Company seems to represent an excellent opportunity for investors seeking exposure to high-growth, disruptive consumer stocks at an attractive technical and fundamental inflection point.

As with any investment, volatility and competition remain factors to monitor, but for those able to navigate the current landscape, The Honest Company offers a compelling, conviction-backed entry into the next wave of clean consumer innovation.

How to buy The Honest Company stock in Ireland?

Buying shares of The Honest Company (NASDAQ: HNST) is both simple and secure for investors in Ireland, thanks to modern online brokers regulated by reputable authorities. Investors can either buy shares outright (spot buying) to directly participate in the company’s growth, or they can use Contracts for Difference (CFDs) to trade on the stock’s price movements without owning the underlying asset. Both methods can be accessed through a regulated broker’s digital platform—making stock trading more accessible than ever. To help you choose the broker that fits you best, you’ll find a detailed comparison further down the page.

Spot buying

Spot, or “cash,” buying involves purchasing actual The Honest Company shares through a recognised broker. In this case, you become a direct shareholder, benefiting from any capital gains if the share price rises, and eligible voting rights. Most Irish-friendly platforms charge a fixed commission per order, usually ranging from €5 to €10 per trade.

Important example

Example:
If The Honest Company shares are trading at $4.98 (approx. €4.60), with $1,000 (approx. €930) you could purchase around 198 shares, factoring in an average brokerage fee of $5.

✔️ Gain scenario:
If the share price rises by 10%, the value of your shares increases to $1,100.
Result: That’s a $100 gross gain, representing a +10% return on your original investment (excluding currency fluctuations and taxes).

Trading via CFD

CFD trading allows you to speculate on The Honest Company stock’s price movements without owning the shares. Using CFDs, you can leverage your exposure—meaning a relatively small initial commitment can control a much larger position. Irish brokers typically charge a spread (difference between buy and sell price), and overnight financing fees if you hold positions more than a day.

Important example

Example:
You decide to open a CFD position on The Honest Company shares with a $1,000 stake, using 5x leverage. This gives you total market exposure of $5,000.

✔️ Gain scenario:
If the share price rises by 8%, your position will reflect a total profit of 8% × 5 = 40%.
Result: That means a $400 gain on your $1,000 initial investment—excluding spread and overnight fees, which can reduce your net profit.

Final advice

Before investing in The Honest Company or any other international stock, it’s essential to compare brokers’ fees, tax implications, and platform features. Whether spot buying or trading via CFDs suits you best depends on your objectives, investment horizon, and risk appetite. For a comprehensive overview of the top brokers available in Ireland, don’t forget to consult our comparison lower on this page.

Our 7 tips for buying The Honest Company stock

The latest news about The Honest Company

The Honest Company posted strong Q1 2025 results, recording a 13% year-over-year revenue increase and a return to profitability. The company’s first quarter results, reported within the last seven days, revealed revenue of $97 million and a positive net income of $3 million, surpassing analyst expectations especially on top-line growth. This performance marked the sixth consecutive quarter of profitability, cementing Honest’s stabilization after previous losses, and reinforces growing confidence among stakeholders in the company’s operational improvements and strategic focus on margin expansion.

The stock is generating technical buy signals, currently trading near its 200-day moving average and showing week-over-week gains. Honest’s share price closed at $4.98 on May 30th, up 0.40% for the week, and is hovering close to a major technical level ($5.11), which is associated with an increased likelihood of upward momentum according to market analysts. This technical dynamic is interpreted as a positive signal by traders and quantitative funds, contributing to an optimistic short-term outlook for the stock.

The company is actively capitalizing on the growth of the “clean” and natural personal care market, which is a key demand driver in Ireland and Western Europe. Irish consumers have demonstrated a strong and growing preference for safe, sustainable, and “clean” products, a trend reflected in ongoing retail sector reports and underscored by the increasing shelf space for such products across major Irish and UK retail chains. The Honest Company’s continued product innovation and expansion within the baby and personal care segment aligns strategically with this market demand, positioning it favorably for distribution partnerships and deepened presence in Irish retail channels.

Leadership changes, notably the appointment of Curtiss Bruce as CFO in May 2025, bring financial stewardship and retail industry expertise amidst the company’s global expansion. Honest’s governance actions signal a commitment to continued operational discipline and prudent financial management. The new CFO is recognized for previous success in scaling consumer brands in the EMEA (Europe, Middle East, Africa) region, an experience that analysts consider particularly relevant as Honest targets further international growth, which may include increased access to Irish and European markets.

Market sentiment for the stock is notably optimistic, with consensus analyst price targets indicating a potential 53% upside from current levels. Despite high volatility (beta 2.43), the stock enjoys a favorable “Buy” consensus, reflecting confidence in its growth trajectory, brand strength, and ability to exploit favorable demand trends across Western Europe. For Ireland-based investors, the positive consensus and the company’s clean product positioning offer an attractive backdrop for inclusion in thematic ESG and health-focused portfolios.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.