INMD - InMode: Take The Plunge Before It Goes Into Beast Mode

2024-02-04 13:30:00 ET

Summary

• InMode stock has consolidated constructively but has not experienced the renewed enthusiasm observed in other med tech stocks.
• Near-term headwinds are expected to persist for INMD due to its specialization in aesthetics. Management offered tepid guidance for 2024.
• INMD's guidance aligns with caution from Baird, pointing to challenges in the aesthetics market that are expected to persist for at least another fiscal year.
• I explain why my confidence hasn't wavered, as INMD's valuation and price action suggest its long-term bottom had already formed.
• Investors looking to partake in a potentially explosive recovery after navigating its near-term challenges should consider it a doubling-down opportunity.

I last updated InMode Ltd. ( INMD ) investors in November 2023, shortly after it fell to a three-year low in October. I assessed that INMD has likely struck its long-term bottom , suggesting the worst is likely over. While INMD has underperformed the S&P 500 ( SPX ) ( SPY ) since my upgrade in November, it has consolidated constructively. Despite that, INMD has not seen the renewed enthusiasm observed in the likes of other med tech stocks that saw a resurgence since falling to their October lows after encountering significant headwinds last summer....

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