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Why InMode Stock Skyrocketed 65% in November

What happened

InMode (NASDAQ: INMD) stock surged 64.7% last month, according to data from S&P Global Market Intelligence. For context, the S&P 500 returned 3.6% in November.

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.

Image source: Getty Images.

So what

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.

Data by YCharts.

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.

Now what

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.

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Beth McKenna has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.


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