Please ensure Javascript is enabled for purposes of website accessibility

Why InMode Stock Skyrocketed 65% in November

By Beth McKenna - Updated Dec 2, 2019 at 11:01PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

This medical tech stock has soared 250% since its August IPO.

What happened

InMode (INMD 0.43%) stock surged 64.7% last month, according to data from S&P Global Market Intelligence. For context, the S&P 500 returned 3.6% in November.

The Israel-based company makes devices that use radio frequency (RF) technology to perform a range of minimally invasive aesthetic procedures. Its stock has been on fire, increasing 250% from its early August initial public offering (IPO), which is sure to land it a spot on the year's best-performing healthcare stocks.

Close-up of a flexed well-conditioned woman's arm with a tape measure around it.

Image source: Getty Images.

So what

We can attribute InMode stock's powerful performance last month largely to the company's Nov. 5 release of third-quarter results that pleased investors. Shares popped 19.7% following the release and continued their upward climb throughout the month.

INMD Chart

Data by YCharts.

In Q3, the company's revenue jumped 57% year over year to $40 million. Growth was "driven primarily by the continued expansion of InMode's direct sales organization in the U.S.," according to the earnings release. Net income surged 87% to $16.2 million, which translated to earnings per share rising 62% to $0.42. This result easily beat the Wall Street consensus estimate of $0.30.

Now what

InMode appears to be an attractive stock that's worth putting on your watch list. It has a potentially huge total addressable market, with the global market for aesthetic procedures increasing, driven by the population aging and becoming heavier.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

InMode Ltd. Stock Quote
InMode Ltd.
INMD
$23.45 (0.43%) $0.10

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
330%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.