On Monday, highly rated InMode shot up 3% as it continues to outperform the market. Additionally, the medical technology maker reached a noteworthy performance benchmark, as its Relative Strength (RS) Rating rose into the 80-plus percentile with an improvement to 81. Market research shows top-performing stocks tend to have at least an 80 RS Rating in the early stages of their moves. InMode stock just joined that elite group.
InMode Stock Boasts Strong Ratings
The 81 RS Rating shows that InMode tops 81% of stocks for price appreciation over the past year. Israel-based watchlist candidate InMode also has a best-possible 99 Earnings Per Share Rating, meaning it tops 99% of all companies, regardless of industry, for profit growth. Further demonstrating its strong fundamentals, its SMR Rating (sales + profit margins + return on equity) is A on an A-to-E scale. Additionally, InMode stock boasts a 97 Composite Rating, out of 99.
The Composite Rating combines five separate proprietary IBD ratings, based on key fundamental and technical criteria, into one easy-to-use score. The best growth stocks have a Composite Rating of 90 or better. The only yellow flag is InMode's C- Accumulation/Distribution Rating, which shows that big funds are selling more shares than buying. Look for that to improve to a C or better rating.
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Small cap InMode stock is working on a consolidation with a 41.84 entry. See if it can clear the breakout price in heavy trade. Its top and bottom line numbers look good and its technicals are in good shape. But its stock has mostly moved sideways since August, trading in a 15-point range. On Monday, InMode stock rose 3% to just above 35.
Profit Growth Accelerated Over Past Year
Bottom line growth moved higher over the past three quarters. In the company's most recent quarter, earnings were up 30% to 52 cents per share. The prior three periods its EPS grew 16%, 20%, then 22%. Revenue last quarter grew 23% year over year to $106.2 million.
InMode stock earns the No. 2 rank among its peers in the Medical-Systems/Equipment industry group. Among other top stocks, Robotic surgery systems maker Intuitive Surgical is No. 5 in the group. Shockwave Medical, which uses sound waves to break down calcified material in the body, especially in the heart area, is No. 3 among the group's highest-rated stocks.
As you try to find the best stocks to buy and watch, keep a close on eye on relative price strength.
IBD's unique Relative Strength Rating identifies market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock's price behavior over the last 52 weeks stacks up against all the other stocks in our database.
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