Why InMode Stock Popped Today
Shares of medical-device maker InMode (NASDAQ: INMD) popped on Tuesday after the company released preliminary financial results for the second quarter of 2022 and raised full-year revenue guidance. As of noon ET today, InMode stock was up 16%.
InMode will announce finalized second-quarter results on July 28. But its preliminary estimates surpassed expectations. The company expects to report revenue of $113 million to $113.3 million, a year-over-year increase between 29% and 30%. Not only that, management raised revenue guidance for 2022 from a range of $415 million to $425 million to a range of $425 million to $435 million.
Even with today's 16% gain, InMode stock trades at a price-to-earnings valuation of just 13, placing it firmly in value-stock territory. However, it trades at such a cheap valuation because investors believed it would be hard to grow in 2022, given the challenging macroeconomic conditions. After all, many procedures with InMode's devices are cosmetic and could be postponed or canceled if consumers' financial situations worsen.
Source Fool.com
