Here's Why InMode (INMD) Fell More Than Broader Market
The most recent trading session ended with InMode (INMD) standing at $23.55, reflecting a -1.88% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a loss of 0.32% for the day. On the other hand, the Dow registered a loss of 0.71%, and the technology-centric Nasdaq decreased by 0.2%.
The maker of cosmetic surgery devices's stock has climbed by 14.5% in the past month, exceeding the Medical sector's gain of 2.33% and the S&P 500's gain of 4.59%.
The investment community will be paying close attention to the earnings performance of InMode in its upcoming release. The company is slated to reveal its earnings on February 13, 2024. The company is expected to report EPS of $0.68, down 12.82% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $126.2 million, reflecting a 5.52% fall from the equivalent quarter last year.
It is also important to note the recent changes to analyst estimates for InMode. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 3.02% lower within the past month. InMode is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, InMode is holding a Forward P/E ratio of 9.34. Its industry sports an average Forward P/E of 20.09, so 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 163, putting it in the bottom 36% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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InMode Ltd. (INMD) : Free Stock Analysis Report
