5 Cathie Wood Stocks to Buy Before the Bull Run Starts

2. InMode Ltd. (NASDAQ:INMD)

Number of Hedge Fund Holders: 27

InMode Ltd. (NASDAQ:INMD) is an Israeli company that develops minimally invasive aesthetic medical products for women’s health conditions and procedures in the United States and internationally. Cathie Wood increased her stake in InMode Ltd. (NASDAQ:INMD) by 29% in Q2 2022, holding 73,637 shares worth about $2 million. On July 28, the company reported its Q2 results, posting earnings per share of $0.59 and a revenue of $113.55 million, topping market consensus by $0.08 and $10.55 million, respectively. 

Baird analyst Jeff Johnson on July 29 raised the price target on InMode Ltd. (NASDAQ:INMD) to $53 from $44 and kept an Outperform rating on the shares.

According to Insider Monkey’s data, 27 hedge funds were long InMode Ltd. (NASDAQ:INMD) at the end of June 2022, compared to 34 funds in the prior quarter. Jim Simons’ Renaissance Technologies is the leading position holder in the company, with 3.10 million shares worth about $69.5 million. 

Here is what Alger has to say about InMode Ltd. (NASDAQ:INMD) in its Q3 2021 investor letter:

“InMode Ltd. was among the top contributors to performance. InMode designs, develops, manufactures and commercializes innovative minimally invasive and non-invasive aesthetic medical products. InMode’s platforms harness novel radio frequency (RF) technology to enable emerging minimally invasive procedures that bridge the gap between temporary treatments like facials and more invasive surgical procedures like facelifts across several categories of surgical specialties such as plastic surgery, gynecology, dermatology, ophthalmology and otolaryngology (ear, nose and throat care).

The aesthetics market is seeing strong tailwinds coming out of the Covid-19 pandemic. These tailwinds include the “Zoom effect,” or dissatisfaction with one’s personal appearance after viewing one’s own face on Zoom, which has resulted in more people deciding to undergo aesthetic procedures. De-stigmatization of aesthetics procedures, aided by social media platforms, is also supportive of InMode’s results. Between the strong growth of its existing product lines and the anticipated launch of two new products, investors perceive InMode as being well positioned to capitalize on the broader strength of the aesthetics market, which is a key reason shares outperformed in the third quarter.”