Our Stock of the Week is Inmode, Ltd (INMD). InMode is a leading global provider of innovative medical technologies. It develops, manufactures, and markets devices that harness novel radio frequency (“RF”) technology. The InMode system uses light, laser, and radiofrequency devices to treat areas of the face and body through skin tightening, contraction, resurfacing, and contouring. InMode treatments are the gold standard for aesthetic medicine and are clinically proven to reduce treatment time recovery time and deliver real results. InMode offers a comprehensive line of products across several categories for plastic surgery, gynecology, dermatology, otolaryngology, and ophthalmology.
The company recently reported robust earnings and revenues and has recovered well from an industry slowdown due to COVID. In its most recent quarter, revenues jumped 29% over last year, and eps increased 20% to $0.66. The company anticipates eps growth of 15% in 2023 but has consistently been increasing guidance. The company has a solid balance sheet and holds almost $6.00 per share in cash.
Technically, the stock is substantially lower than the $100 level that it hit as the bear market started late last year, but it found support a little over the $20 area and has bounced nicely on strong earnings.
The stock will be sensitive to overall market conditions, and there is likely to be some concern about the impact of a recession on plastic surgery demand, but the company has shown great consistency and currently is seeing no slowing in demand.
As always, we would not chase the open to start the week but will look to aggressive trade into volatility. We view the stock as a good buy on pullbacks.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and will buy or sell at any time for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, clients, employees, and affiliates of Hammerhead Financial Strategies, LLC, directly or indirectly, controlled investment and/or trading accounts containing positions in INMD To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.
