Whether you have personal experience with cosmetic surgery or not, this corner of the economy is probably larger than you imagine. Grandview Research recently valued the global cosmetic surgery and procedure market at over $63 billion in 2021 -- and it's growing fast. This figure is expected to grow by 9.6% annually through 2030.

Roughly two-fifths of all cosmetic procedures performed in 2021 were invasive in nature, but most of the growth we're seeing is from noninvasive procedures. InMode (INMD -1.25%) is a medical-device maker leading the transition toward minimally invasive cosmetic procedures. Here are five reasons it's one of the best stocks you can buy in 2023.

1. Rapid growth in good times and bad

InMode develops, manufactures, and markets a plethora of minimally invasive tools used to sculpt and contour skin. Many of its tools employ proprietary directional radiofrequency (RF) technology.

Since no competitors can market similar RF-technology-powered devices, demand has been strong and steady. The COVID-19 pandemic's lockdown phase pressured sales somewhat, followed by a boost in 2021, which could have led to disappointing comparisons in 2022. But it hasn't.

INMD Revenue (TTM) Chart

INMD Revenue (TTM) data by YCharts. TTM = trailing 12 months.

Despite a looming recession and inflation that has left consumers with less to spend on frivolities like cosmetic procedures, InMode's sales are growing at an impressive pace. Third-quarter sales rose 29% year over year and by 7% compared to the previous quarter.

While InMode's third-quarter results were impressive, the stock fell because sales growth decelerated slightly in 2022.

2. Lots of room to grow

At an annualized $485 million, total revenue at InMode has only scraped the surface of the $63 billion aesthetics market. Investors with long-term mindsets will be glad to know the company is also expanding beyond aesthetics.

For example, in August 2021, InMode launched a women's health platform called EmpowerRF. With many of the same tools contained in its cosmetic workstations, healthcare providers can use EmpowerRF to reeducate weak pelvic floor muscles.

Physicians eager to treat a variety of problems, from urinary incontinence to chronic pain, during office visits are falling over each other trying to get their hands on the EmpowerRF platform. At the beginning of 2022, InMode predicted $30 million in total EmpowerRF sales, but the company already passed that goal in the third quarter.

3. A razor-and-blades business model

In the third quarter, 88% of the revenue InMode recorded came from sales of capital equipment. The rest came from higher-margin sales of services and consumable gear that must be replaced after each procedure.

Sales of new workstations are driving growth at the moment, but the market will eventually hit a saturation point. When it does, InMode's bottom line should be able to continue growing along with the total number of procedures performed.

Individual investor doing research at home.

Image source: Getty Images.

4. Already profitable

After over a decade of interest rates down near zero, the Federal Reserve jacked up the target rate past 4% in 2022. Rising costs of capital are dramatically changing the calculations analysts use to measure the value of growth stocks, partly because most businesses in a high-growth phase require lots of capital to continue growing.

InMode's revenue stream resembles a business in a high-growth phase but not its bottom line. This well-managed company earned $48.8 million in the third quarter on a generally accepted accounting principles (GAAP) basis. That works out to an outstanding 40% of topline revenue.

An ability to fuel future growth with internally generated profits means higher interest rates won't pose too much of a challenge for InMode.

5. A nice price

InMode's growing share of the enormous market for minimally invasive cosmetic procedures could push up sales and profits by a double-digit percentage for many years to come. With years of rapid growth ahead, you might expect the stock to trade at a high valuation, but this isn't the case. Right now, shares of InMode are trading at just 17.2 times trailing earnings.

InMode's price-to-earnings multiple is significantly lower than the average stock in the S&P 500 index, which trades at 18.6 times trailing earnings. With earnings that could grow at several times the pace of the average stock in the benchmark index, this stock looks like a terrific bargain.