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InMode (INMD) Moves 6% Higher: Will This Strength Last?

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InMode (INMD - Free Report) shares ended the last trading session 6% higher at $76.61. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 17.2% gain over the past four weeks.

InMode extended its rally for the third consecutive day, driven by the optimism surrounding the growing demand of its minimally invasive and innovative hands-free proprietary electrosurgical bipolar radiofrequency (RF) platforms. This can be attributed to rising customer adoption and recently introduced Morpheus8 product. Market is also upbeat about the company’s record fourth-quarter and full-year 2020 revenue performance, with the fourth-quarter sales registering year-over-year growth of 60% and full-year sales delivering an increase of 32% from the year-ago period.

Price and Consensus

Price Consensus Chart for InMode

This maker of cosmetic surgery devices is expected to post quarterly earnings of $0.49 per share in its upcoming report, which represents a year-over-year change of +63.3%. Revenues are expected to be $51.08 million, up 26.3% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For InMode, the consensus EPS estimate for the quarter has been revised 7.9% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on INMD going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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