10 Best Cosmetic Surgery and Aesthetics Stocks To Buy

6. InMode Ltd. (NASDAQ:INMD)

Number of Hedge Fund Investors: 20

Revenue Growth Rate (year-over-year): 8.32%

The company InMode Ltd. (NASDAQ:INMD) is engaged in the development, manufacturing, and marketing of minimally invasive medical devices intended for cosmetic purposes. The company’s patented technologies, deep subdermal fractional radiofrequency and radiofrequency aided lipolysis, serve as the foundation for these advancements. Additionally, InMode Ltd. (NASDAQ:INMD) creates and develops medical aesthetic solutions that are non-invasive for a variety of procedures.

Wasatch Micro Cap Value Strategy stated the following regarding InMode Ltd. (NASDAQ:INMD) in its fourth quarter 2023 investor letter:

“InMode Ltd. (NASDAQ:INMD) was also a detractor. This Israeli company develops aesthetic treatments for the face, body and skin. The treatments harness novel radio-frequency technology. Inmode has experienced extremely strong growth, which we think will continue because the company’s treatments are very effective and far ahead of the competition. During the quarter, however, the stock was down due to the attack on Israel and a forecast of increased seasonality in Inmode’s revenues and earnings. Nevertheless, we still like Inmode based on its technological edge, strong balance sheet, gross margins in excess of 80% and a valuation of a 6 multiple based on forward EV-to-EBITDA.”

Jefferies downgraded InMode Ltd. (NASDAQ) in July amid wider economic issues from Buy to Hold, decreasing the price objective from $21.00 to $19.00. The drop was attributed to worries about the impact on the aesthetics market. Analysts anticipate that the market will continue to be tough, which might have an effect on InMode’s performance in the second half of 2024 and make it more difficult for the company to reach its financial goals. The stock is currently trading at $17.89 as of July 28.

InMode Ltd. (NASDAQ:INMD) has a unique technological advantage that sets it up for future growth. It is one of the best cosmetic surgery and aesthetics stocks to buy now. In Q1 2024, 20 hedge funds were bullish on InMode Ltd. (NASDAQ:INMD). Catherine D. Wood’s ARK Investment Management held the largest stake in the company, with 124,905 shares worth $2.28 million.