Looking for a small-cap stock with good potential? Cosmetic procedures equipment maker InMode may fill that order. On Monday the Relative Strength (RS) Rating for InMode stock earned an upgrade to 75, up from 61 last week.
The upwardly revised 75 RS Rating shows that InMode stock has outperformed 75% of all stocks over the past year. It's a bullish indicator, and its other ratings are even better. However, when looking for the best stocks to buy and watch, market research shows that top-performing stocks tend to have an 80 or better RS Rating in the early stages of their moves. See if InMode can continue to show renewed price strength and hit that benchmark.
See How IBD Helps You Make More Money In Stocks
InMode Stock's Other Ratings Glow
Israel-based InMode makes radio frequency emitting devices used by cosmetologists to perform cosmetic surgery. Analysts see the number of optional procedures rising after they fell off sharply during the worst of the pandemic. Among its other ratings InMode owns a powerful 96 Earnings Per Share Rating, out of 99, reflecting strong earnings growth in recent quarters and years. InMode stock also has an 86 Composite Rating, putting it in the top 14% of all companies on a group of fundamental and technical metrics. Its C Accumulation/Distribution Rating on an A+ to E scale shows that about as many ETFs, mutual funds and other institutional investors are buying as selling its shares.
InMode stock rose early Monday in trading on the stock market today, then reversed in the afternoon to around 34 for a small loss. It dropped to a 20.60 low on May 12 last year and has risen about 60% since then. However, to put that fully in perspective, it's still far below its all-time high 99.27 set on Nov. 2, 2021. It's been moving in the right direction though.
Sales, Profits Grow At Double-Digit Pace
Revenue for the stock watchlist candidate grew 29% last quarter to $121.2 million, at least its fourth quarter in a row of double-digit sales growth. Similarly, earnings growth ranged from 16% to 36% this past year. Last quarter its EPS grew 20% to 66 cents per share. The next quarterly results are expected on or around Feb. 14.
InMode stock earns the No. 4 rank among its peers in the Medical-Systems/Equipment industry group. Idexx Laboratories and Masimo are also among the group's highest-rated stocks.
IBD's unique Relative Strength Rating tracks technical performance by showing how a stock's price action over the last 52 weeks measures up against that of the other stocks in our database.
Please follow James DeTar on Twitter @JimDeTar
