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With a market cap of $18.4 billion, Insulet Corporation (PODD) is a global leader in developing innovative insulin delivery systems, including the Omnipod Insulin Management System, designed for people with insulin-dependent diabetes. It offers advanced solutions like Omnipod 5, Omnipod DASH, and Omnipod GO, enabling discreet and user-friendly insulin management.
Shares of the Acton, Massachusetts-based company have outperformed the broader market over the past 52 weeks. PODD has risen 41.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 32.1%. However, in 2024, shares of PODD are up 22.8%, lagging behind SPX’s 26.2% gain on a YTD basis.
Focusing more closely, the insulin infusion systems maker has outpaced the Health Care Select Sector SPDR Fund’s (XLV) 11.5% return over the past 52 weeks and a 7.2% YTD return.
Insulet's shares jumped 9.4% following its Q3 earnings release on Nov. 7 due to strong demand for its Omnipod devices, with quarterly revenue of $543.9 million and adjusted EPS of $0.90, both beating analyst expectations. The company raised its full-year 2024 revenue growth forecast to 20%-21% and its Omnipod revenue growth projection to 21%-22%, reflecting confidence in sustained momentum. Additionally, the FDA's recent approval of Omnipod 5 for type 2 diabetes and expectations of stronger customer additions in the second half further bolstered investor optimism.
For the current fiscal year, ending in December, PODD is expected to report an EPS of $3.22, reflecting a 17.1% year-over-year growth. The company’s earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing on another occasion.
Among the 21 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 17 “Strong Buy” ratings, one “Moderate Buy,” and three “Holds.”
This configuration is slightly more bullish than three months ago, with 16 “Strong Buy” ratings on the stock.
On Nov. 12, Morgan Stanley raised Insulet's price target to $317 - the Street-high price target, maintaining an “Overweight” rating due to strong Q3 results, high-quality growth, robust cash flow, and upcoming catalysts. This implies a potential upside of nearly 19% from the current price levels.
As of writing, PODD is trading below the mean price target of $277.85.
