5 Best Cosmetic Surgery and Aesthetics Stocks to Buy

In this article, we discuss 5 best cosmetic surgery and aesthetics stocks to buy. If you want to see our detailed discussion on the cosmetics and aesthetics sector, head directly to 10 Best Cosmetic Surgery and Aesthetics Stocks to Buy. 

5. AVITA Medical, Inc. (NASDAQ:RCEL)

Number of Hedge Fund Holders: 12

AVITA Medical, Inc. (NASDAQ:RCEL), one of the best cosmetic surgery and aesthetics stocks, functions as a regenerative medicine company in the United States, Japan, Australia, and the United Kingdom. The company provides regenerative solutions designed to meet medical requirements in areas such as burn injuries, traumatic injuries, chronic wounds, and both dermatological and aesthetic concerns, for conditions like vitiligo. On August 10, AVITA Medical, Inc. (NASDAQ:RCEL) reported a Q2 GAAP EPS of -$0.41, falling short of Wall Street estimates by $0.10. Its revenue came in at $11.75 million, exceeding market consensus by $0.18 million.

According to Insider Monkey’s second quarter database, 12 hedge funds were bullish on AVITA Medical, Inc. (NASDAQ:RCEL), in contrast to the previous quarter when 11 hedge funds had invested in the stock. Efrem Kamen’s Pura Vida Investments held the largest position in the company, with 426,321 shares worth $7.25 million.

4. Establishment Labs Holdings Inc. (NASDAQ:ESTA)

Number of Hedge Fund Holders: 15

Next on the list of the best aesthetics stocks is Establishment Labs Holdings Inc. (NASDAQ:ESTA), a company specializing in medical technology. It produces and promotes medical equipment intended for both aesthetic and reconstructive plastic surgery purposes. The company’s main focus is on providing silicone gel-filled breast implants, marketed under the brand name Motiva Implants. On August 8, Establishment Labs Holdings Inc. (NASDAQ:ESTA) announced a Q2 GAAP EPS of -$0.65 and a revenue of $48.6 million, outperforming Street estimates by $0.06 and $1.23 million, respectively.

According to Insider Monkey’s second quarter database, 15 hedge funds were bullish on Establishment Labs Holdings Inc. (NASDAQ:ESTA), compared to the preceding quarter when 18 funds had invested in the stock. Wilmot B. Harkey and Daniel Mack’s Nantahala Capital Management is the leading position holder in the company, with 1.8 million shares worth $126.5 million.

Here is what Baron Funds specifically said about Establishment Labs Holdings Inc. (NASDAQ:ESTA) in its Q2 2022 investor letter:

“Establishment Labs Holdings Inc. (NASDAQ:ESTA) is a medical technology company that sells silicone gel-filled breast implants, branded as Motiva Implants, in more than 80 countries outside of the U.S. The company’s breast implants are made with a unique, proprietary smooth surface technology which minimizes the immune response and has had low rates of adverse events, particularly capsular contracture (squeezing of the implant by surrounding tissue) and rupture.

The company has been gaining market share in its existing geographies, but it has not yet received regulatory clearance in the U.S., which represents roughly half of the $1.5 billion breast implant market. Establishment has been running a pivotal U.S. trial to support FDA approval in the U.S. and recently announced two-year follow-up results at a medical meeting. The data revealed low complication rates, which should position the company to receive FDA approval over the next 12 to 18 months.

China represents a fast-growing market and Establishment expects to receive regulatory approval there in the coming months. In addition, the company is developing a minimally invasive breast implant called Motiva Mia, which can be implanted in a 15-minute procedure in an outpatient setting without general anesthesia. The company estimates an addressable market for Motiva Mia of 1.9 million new patients equating to a $3 billion to $5 billion incremental revenue opportunity. We think Motiva Mia will expand the company’s market opportunity materially, adding to the company’s long runway for growth.”

3. Cutera, Inc. (NASDAQ:CUTR)

Number of Hedge Fund Holders: 22

Cutera, Inc. (NASDAQ:CUTR) delivers aesthetic and dermatological solutions to medical professionals globally. The company engages in the development, production, and promotion of energy-based product platforms specifically for medical practitioners. It also distributes skincare products manufactured by third parties. On August 8, Cutera, Inc. (NASDAQ:CUTR) reported a Q2 GAAP EPS of -$1.59 and a revenue of $61.2 million, missing Wall Street estimates by $0.74 and $3.73 million, respectively. However, it remains one of the best aesthetics stocks to buy according to smart investors. 

According to Insider Monkey’s second quarter database, 22 hedge funds were bullish on Cutera, Inc. (NASDAQ:CUTR), compared to 21 funds in the previous quarter. Israel Englander’s Millennium Management held a significant position in the company, with 1.45 million shares worth $21.9 million.

2. InMode Ltd. (NASDAQ:INMD)

Number of Hedge Fund Holders: 26

InMode Ltd. (NASDAQ:INMD) is involved in the creation, advancement, production, and promotion of minimally invasive medical products for aesthetic purposes. These innovations are built upon the company’s proprietary technologies – radiofrequency assisted lipolysis and deep subdermal fractional radiofrequency. InMode Ltd. (NASDAQ:INMD) also designs and develops non-invasive medical aesthetic products for multiple procedures. It is one of the best aesthetics stocks to buy. On July 27, InMode Ltd. (NASDAQ:INMD) announced a Q2 non-GAAP EPS of $0.72 and a revenue of $136.08 million, exceeding Wall Street estimates by $0.06 and $3.53 million, respectively.

According to Insider Monkey’s second quarter database, 26 hedge funds were bullish on InMode Ltd. (NASDAQ:INMD), in contrast to the last quarter when 34 funds had invested in the stock. Noam Gottesman’s GLG Partners is the largest stakeholder of the company, with approximately 1.1 million shares worth $40.55 million.

Here is what Alger has to say about InMode Ltd. (NASDAQ:INMD) in its Q3 2021 investor letter:

“InMode Ltd. was among the topic contributors to performance. InMode designs, develops, manufactures and commercializes innovative minimally invasive and non-invasive aesthetic medical products. InMode’s platforms harness novel radio frequency (RF) technology to enable emerging minimally invasive procedures that bridge the gap between temporary treatments like facials and more invasive surgical procedures like facelifts across several categories of surgical specialties such as plastic surgery, gynecology, dermatology, ophthalmology and otolaryngology (ear, nose and throat care).

The aesthetics market is seeing strong tailwinds coming out of the Covid-19 pandemic. These tailwinds include the “Zoom effect,” or dissatisfaction with one’s personal appearance after viewing one’s own face on Zoom, which has resulted in more people deciding to undergo aesthetic procedures. De-stigmatization of aesthetics procedures, aided by social media platforms, is also supportive of InMode’s results. Between the strong growth of its existing product lines and the anticipated launch of two new products, investors perceive InMode as being well positioned to capitalize on the broader strength of the aesthetics market, which is a key reason shares outperformed in the third quarter.”

1. Zimmer Biomet Holdings, Inc. (NYSE:ZBH) 

Number of Hedge Fund Holders: 46

Zimmer Biomet Holdings, Inc. (NYSE:ZBH) functions as a medical technology firm in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company is involved in the conception, production, and promotion of orthopaedic reconstructive products. It is the best cosmetic surgery and aesthetics stock to buy. On August 1, Zimmer Biomet Holdings, Inc. (NYSE:ZBH) announced a Q2 non-GAAP EPS of $1.82 and a revenue of $1.87 billion, outperforming Wall Street consensus by $0.01 and $40 million, respectively.

According to Insider Monkey’s second quarter database, 46 hedge funds were bullish on Zimmer Biomet Holdings, Inc. (NYSE:ZBH), compared to 51 funds in the preceding quarter. Steve Cohen’s Point72 Asset Management is the largest position holder in the company, with 1.6 million shares worth $238.1 million.

Here is what Ariel Investments has to say about Zimmer Biomet Holdings, Inc. (NYSE:ZBH) in its Q4 2021 investor letter:

“A reopening of the global economy with a reduction in the severity of the pandemic has led us to invest in companies that would perform well with an end to Covid restrictions such as canceled sports and entertainment events or companies that would benefit from pent-up demand for consumer products. Healthcare holdings such as Zimmer Biomet Holdings Inc. (ZBH) saw demand for their “elective” healthcare services decline sharply as hospitals lost capacity for non-essential surgeries or orthotics. We believed those companies should see a rebound in their business as cases decline. Unfortunately, two new Covid variants turned this theme from a tailwind to a headwind in the second half of the year. First, Delta then Omicron sent Covid cases higher and both companies saw their businesses slow again. Zimmer’s stock lost -13.04% in the fourth quarter. As we write, we believe Omicron cases could be nearing a peak which would allow our thesis to better play out this year.”

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