The medical aesthetics company’s products use radio-frequency technology to perform facial and body reshaping in a noninvasive manner.
Its products are used in the fields of cellulose removal, dermatology and gynecology. The company has used 80s pop star Paula Abdul as a brand ambassador to attract customers.
InMode Stock Analysis
InMode stock is offering a new entry point as it rebounds off its 10-week moving average. It is also close to retaking its 21-day exponential moving average, a shorter term benchmark.
INMD pulled back and found support twice at its 21-day line following a June breakout from a cup-with-handle base. The third test broke the 21-day line and dropped to the 50-day/10-week level, a healthy move to consolidate after the 35% post-breakout advance.
InMode stock has a perfect IBD Composite Rating of 97. The fact such a young company also holds a best-possible an EPS Rating of 99 is particularly impressive.
The Stock Checkup underlines the progression on this front. Over the past three quarters earnings have grown by an average of 186%. Earnings have accelerated for the past four quarters, hitting 324% growth in the most recent quarter.
Longer-term growth is also good, with earnings growing by an average of 68% over the past three years. This is very important for growth stocks, and easily bests the 25% growth benchmark sought by the CAN SLIM cognoscenti.
Analysts see growth continuing, with EPS projected to swell 55% in 2021 and 7% in 2022.
Stocks To Watch: Analyst Touts New InMode Product
UBS analyst Matthew Taylor, who rates InMode stock as a buy with a 125 target, has highlighted the fact the firm plans to launch its Empower in mid-August. This is the first new platform launch geared toward the women’s health market since FDA actions in August 2018.
“The platform will offer four hand pieces and applications including pelvic floor restoration/SUI, tissue contraction, labiaplasty, and abdominal muscle stimulation post pregnancy,” he said in a research note. “In ophthalmology, INMD expect to launch its Envision platform including in November/December and has already received FDA clearance for all system applicators.”
It can be used to treat dry, upper and lower lids and periorbital wrinkles. Taylor thinks there is “very little for these launches in guidance.”