Today, I want to talk about your face. And my face. Pretty much all of our faces.
Allow me to explain…
We’ve all had to deal with the pandemic for a couple of years now. Between being trapped at home, trying to get kids on virtual learning, and desperately trying to find toilet paper at the grocery store, I think we can all agree that it hasn’t been much fun. And that doesn’t include the fact that you may have gotten sick with COVID.
But there is the elephant in the room that doesn’t get quite so much attention, and it could be a perfect investment opportunity.
One unintended consequence is that we’ve had to look at our faces far more often. If you’re anything like me, you’ve had to spend hours a day on Zoom calls for work and Facetiming with family. While before, you could have had in-person work meetings and greetings, now we’ve been subjected to these video conferences where you are staring at your own face for hours.
Every wrinkle, pimple, and imperfection is glaring right back at you from your computer screen. In many cases, this was not the most pleasant experience.
It’s no secret that we humans can be a vain bunch. We want to turn back the hands of time as we age. That’s why elective cosmetic surgery has surged past pre-pandemic levels: almost 30% of clinics have noted that their business has doubled since 2019.
A major motivation for the rise is “The Zoom Effect.” People – especially women between 31 and 45 – have become incredibly self-conscious about those virtual meetings. That has driven a boom in elective surgeries to repair any pesky flaw in our faces.
From a 2021 study by The Aesthetic Society:
Public interest in above-the-shoulder surgical procedures statistically significantly increased following February 2020 compared with below-the-shoulder procedures. Continued examination of specific procedure trends and determining correlations with more accurate procedural datasets will provide increased insight into consumers' mindsets and to what extent video conferencing plays a role in the public's interest in pursuing aesthetic surgery.
The Zoom Effect is real, and it's only gaining steam.
Some objections to plastic surgery are that “going under the knife” sounds scary, painful, and carries dangerous side effects. However, a new company seeks to change that with the available least invasive procedures.
InMode Ltd. (NASDAQ: INMD) is a leading global provider of innovative medical technologies. Instead of invasive elective surgeries, the company develops, manufactures, and markets platforms that harness novel radio-frequency (RF) based technology.
Essentially, a doctor will use a wand connected to a machine that creates radio waves. They will pass the wand over your body to apply those radio waves to your skin – safely and painlessly.
Their Forma brand does have a magic wand vibe going on…
These “deep subdermal” radio-frequencies are used to do everything from facelifts to eye tightening and remodeling tissue and fat. No knives are required.
InMode has just posted record quarterly revenue and just signed actress, model, and influencer Eva Longoria as its global brand ambassador to grow the company overseas. The company plans to open subsidiaries to sell its hardware in Asia and Europe by the middle of next year. That should allow InMode to gather revenue streams and further grow the business.
InMode isn't all about cosmetic surgery; their technology is also used in gynecology, dermatology, and ophthalmology.
Five research analysts have rated the stock with a buy recommendation. The average twelve-month price target among brokerages that have covered the stock in the last year is $46.17. The stock has seen quite a wild year, with a 52-week range of $20.60 – $71.68.
InMode has a P/E ratio of 17.77 and a EPS of 1.97.
It’s currently trading around $34. I’d pick some up and give your portfolio a facelift in 2023.
As the population ages and the trend of cosmetic surgery continues, InMode Ltd. (NASDAQ: INMD) is in a great position for 2023 and beyond.
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