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Why Progyny Caught My Eye; Is It A Buy?

May 16, 2023 9:10 AM ETProgyny, Inc. (PGNY)UNH12 Comments
Bradley Guichard profile picture
Bradley Guichard


  • Sparsely followed Progyny, Inc. is quietly making industry waves.
  • The target market is in its infant stage with intriguing secular tailwinds.
  • The company increased clients by 44% and gross profit by 78% over the last year; it's time investors took notice.

Cute little child with a smartphone under dollar rain

ismagilov/iStock via Getty Images

Tremendous secular opportunity

Women are having babies much later in life now than in the past. Many women and couples focus on careers, education, traveling, and becoming financially stable in their 20s (and even 30s) before taking the plunge.

This article was written by

Bradley Guichard profile picture
If you are a medium to long-term investor looking for an analysis of equities focused on cash flow, growth, and other critical metrics from a financial professional who knows financial statements inside and out, consider giving me a follow.While I am Tech-focused, I have a diversified portfolio, including growth and value equities, REITs, and dividend stocks. I like to use options for income and risk management when the opportunity arises. I have over 15 years of experience in the market. I am a practicing CPA; however, I have learned about investing more from avid reading, market watching, experience, and of course, making mistakes over the years. Also, am an admitted Excel junkie. I believe Benjamin Franklin when he said: "An investment in knowledge pays the best returns," and Warren Buffet that "The most important quality for an investor is temperament, not intellect." I am constantly learning and focusing on long-term goals - even when the market misbehaves.  Thank you very much for reading, and please feel free to leave me a message in the comments or send a private message. All the best!

Analyst’s Disclosure: I/we have a beneficial long position in the shares of PGNY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (12)

I have a 1000 shares of this company. This was one of Jpm top listed stock for the sheconomy
Bradley Guichard profile picture
@JeffSizemore interesting, thanks for sharing. Do you recall their reasoning?
@Bradley Guichard by 2035 over 60% of women will be single and childless as more women are starting to focus on their careers over family. As women lose 80% of their eggs by 35 they have no choice but to freeze their eggs and the average age of first marriage is getting later and later

Companies know this and they are paying huge sums to get women to freeze their eggs.

Personally I’m seeing this first hand. I see the total tam as 50% of all western women plus some countries in Asia giving Pgny a huge possible market cap. I’m buying on any weakness
Assessing the Div profile picture
Thank you for your take. Might be the 1st growth stock for me.
Bradley Guichard profile picture
@Assessing the Div Thanks for reading. I think its an interesting company to watch and dip a toe in (but be mindful of the risks as well). Best of luck!
Hindsight Investor profile picture
Nice article. I too dipped some toes in the water on PGNY. I agree, it’s a bit speculative, so small position size plus DCA seems like the best approach. Even so, a GAAP profitable growth company with sound Balance Sheet isn’t commonplace these days. On the speculative spectrum, it feels to be more on the safer side.
Bradley Guichard profile picture
@Hindsight Investor Thanks for the comment, and I agree with you. The only other caution is that it is really hard to place a value on at this point. Very limited comparables, and GAAP EPS will probably bounce around at this stage. Looks like a fun one to watch. Best of luck!
If I am being honest with you. I was more impressed with your article then I was with the company. I can not believe their retention rate is ALMOST 100%.
Bradley Guichard profile picture
@srduke13 Thanks for the comment. If you have personal experience with the company, I'd love to hear about it, feel free to DM me if you like. I understand the hesitation with the stat, but I think they wouldn't want to open themselves up to scrutiny/liability by putting out inaccuracies - so for me I take it at face value. Thanks again for reading and taking the time to comment. All the best.
Benjamin Graham Cracker profile picture
Love this company on a number of fronts.

1) They target larger companies, and this benefit is relatively inexpensive for large firms to offer and it's a great recruiting/retention tool for companies. Utilization is pretty low, as only a small, small fraction of your workforce will be using the benefit at any moment.

2) This is a profitable company, with opportunities to expand in other areas of fertility and family planning and more (childcare? early education? special needs support? There are immense unmet needs for raising children in the country and Progyny could expand its offerings)

3) This is likely going to get bought out by the likes of CVS, Elevance or another insurer looking to go vertical.

4) Given my family's own fertility journey, I simply like what this company does. I believe in its mission, and I like supporting a company that is helping people's families grow.
Bradley Guichard profile picture
@Benjamin Graham Cracker thanks for that detailed comment. Good stuff. I have similar thoughts on buyout potential as well. All the best.
rppearson profile picture
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