Saturday, December 14, 2013

Face It: Cosmetic Surgery Stocks May Make Your Portfolio Look Good

A quarter of all Americans are over the age of 55, according to the United States Census, and those Americans are looking for ways to look younger, whether for social, employment, or personal self esteem reasons.

The Growth of the Cosmetic Surgery Industry

Approximately 3.3 million Americans in that age group had some form of cosmetic procedure in 2010, according to the Stony Brook University School of Medicine. There have been numerous advances in cosmetic surgery procedures, including liposuction. The procedure's are now much quicker, safer, and with a much faster recovery period.

The Stock that was Up 300% this Year

The growth of this industry is huge, and some stocks have had the capital appreciation to prove it. Look at ZELTIQ Aesthetics (ZLTQ), which makes non-invasive products for the selective reduction of fat, with its CoolSculpting System. The stock is up 300% this year in spite of the fact that the company is generating negative earnings.

 Investors have over half a dozen cosmetic surgery product companiest to choose from,  based on the free list at Some of these stocks are debt free with lots of cash.

Cosmetic Surgery Stocks

One of the leaders in the field is Cynosure (CYNO), which markets the  Smartlipo® LaserBodySculpting™ Workstations that is used for treating localized fat deposits using a minimally invasive technique. The companies also sell laser systems to treat cellulite, including Cellulaze, SmoothShapes XV, and Triactive. Another product is PicoSure, a picosecond instrument to remove tattoos. The stock trades at 18 times forward earnings. Revenues for the latest reported quarter ending September 30 were up an incredible 63.7%. The company has $536,000 in debt, with $4.34 in cash per share.

Solta Medical (SLTM) manufactures the Thermage CPT non-invasive treatment for skin tightening, and the Liposonix system to destroy unwanted fat cells for waist circumference reduction. The stock trades at 35 times forward earnings. Revenue for the latest quarter dropped 4.2%.

PhotoMedex (PHMD) makes XTRAC laser products for psoriasis and vitiligo, NEOVA for premature skin aging, and Omnilux Light-emitting diode for wrinkles and acne. The stock has a PE of 12 and a forward PE of 10. It has $154,000 in debt, with $2.45 in cash per share. Unfortunately, earnings tanked for the latest quarter, dropping 88.2%, on a 19% reduction in revenues.

More 'Looking Good' Stocks

To access a free list of of the cosmetic surgery stocks, and stocks in related industries, go to The list includes the trailing PE, the forward PE, the total debt, the cash per share and the business.

Disclosure: Author did not own any of the above at the time the article was written.


No comments: