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.
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.
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.
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.