In the latest trading session, InMode (INMD) closed at $34.91, marking a +1.28% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.84%. Meanwhile, the Dow gained 0.96%, and the Nasdaq, a tech-heavy index, added 0.81%.
Coming into today, shares of the maker of cosmetic surgery devices had lost 9.5% in the past month. In that same time, the Medical sector lost 1.32%, while the S&P 500 gained 0.19%.
Investors will be hoping for strength from InMode as it approaches its next earnings release. The company is expected to report EPS of $0.69, up 4.55% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $140.1 million, up 15.57% from the year-ago period.
INMD's full-year Zacks Consensus Estimates are calling for earnings of $2.72 per share and revenue of $541.1 million. These results would represent year-over-year changes of +12.4% and +19.11%, respectively.
Investors might also notice recent changes to analyst estimates for InMode. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. InMode is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, InMode currently has a Forward P/E ratio of 12.67. Its industry sports an average Forward P/E of 19.21, so we one might conclude that InMode is trading at a discount comparatively.
The Medical - Products industry is part of the Medical sector. This group has a Zacks Industry Rank of 79, putting it in the top 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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