Shareholders of medical technology company InMode (INMD 4.23%) have not had a great 2022; the stock has fallen roughly 50% since the beginning of the year.

Sometimes stocks fall because something bad happens within a business. But stocks can fall for no reason at all during bear markets.

Don't let Wall Street's volatility get you down. Here are three reasons to consider InMode as a long-term growth stock for your portfolio.

1. Did someone say there was a recession?

InMode designs and builds non-invasive medical equipment for cosmetic procedures like face and body contouring, hair removal, and women's wellness. The equipment uses a combination of lasers and radiofrequency.

Traditionally, patients were left choosing between topical treatments, which require many visits and often don't work very well, and plastic surgery, which is expensive, painful, and very involved. InMode is trying to balance the two; its procedures are often outpatient and are done in a healthcare professional's office.

Whether the U.S. has technically fallen into recession is up for debate, but consumers are feeling the squeeze of inflation and consumer sentiment is at multi-year lows. However, people are still seeking procedures because InMode keeps growing briskly.

INMD Revenue (TTM) Chart

INMD Revenue (TTM) data by YCharts

The company's done more than $400 million in revenue over the past four quarters, including a 30% year-over-year increase in revenue in the second quarter. Management raised full-year 2022 revenue guidance to an all-time high of $425 million to $435 million.

Healthcare is a critical need, but one could argue that cosmetic procedures fall into a discretionary category, which might get pulled back when times get tough. While investors can't know what will happen in a year, it seems that InMode hasn't yet felt any strain on its business, and the raised guidance exudes confidence.

2. A very profitable growth stock

InMode generates great gross profit margins, typically in the high 80s. It outsources its manufacturing, so it's also a lean business, producing nearly $0.49 in free cash flow from each revenue dollar.

INMD Gross Profit Margin Chart

INMD Gross Profit Margin data by YCharts

The company's accumulating cash on the balance sheet, now totaling $443 million against zero debt. It doesn't pay a dividend and has spent just $66 million on share repurchases over the past year, so there's plenty to invest in growth, product development, and seeing the company through unexpected financial hiccups. In other words, a strong balance sheet makes a great safety net for shareholders.

3. Small and inexpensive

InMode's small size is arguably the stock's most fascinating trait; you might think a business generating so much cash and growing through a potential recession would command a lofty valuation, but nope:

INMD PE Ratio Chart

INMD PE Ratio data by YCharts

The stock's price-to-earnings ratio (P/E) is currently just 17, roughly in line with the S&P 500's historical valuation, and trades at a discount to where the index is valued today.

But while the market has averaged roughly 10% profit growth over many decades, InMode's grown earnings per share (EPS) by an average of 60% annually over the past three years. This is a young and growing business, which arguably justifies a much higher valuation than something comparable to the S&P 500.

Markets are unpredictable, and it's hard to know how much InMode's stock will bounce around over the coming months. But it's a small and cheap stock with excellent financials, something Wall Street should smile upon when given enough time. Patient investors could enjoy some great investment returns over the long term.