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Valued at a market cap of $18.5 billion, Insulet Corporation (PODD) develops, manufactures, and sells insulin delivery systems for people with insulin-dependent diabetes. The Massachusetts-based company focuses on improving the lives of people with diabetes and other conditions through its Omnipod delivery system.
Companies worth $10 billion or more are generally described as “large-cap” stocks, and Insulet fits right into that category with its market cap exceeding this threshold. The healthcare company is known for its wearable, disposable pod that delivers insulin for up to three days without the need for needles. It is also renowned for its tubeless system, which integrates with a continuous glucose monitor to manage blood sugar.
PODD is currently trading 5% below its 52-week high of $279.77, reached recently on Dec. 12. Shares of this medical devices company have increased almost 12.9% over the past three months, significantly outperforming the broader Dow Jones Industrials Average’s ($DOWI) 2.7% gain during the same time frame.
Moreover, in the longer term, PODD has gained 20.4% over the past 52 weeks, outpacing DOWI’s 15.4% returns. Over the past six months, shares of PODD have rallied 28.5%, massively surpassing DOWI’s 10.7% gains over the same time frame.
To confirm its bullish price trend, PODD has been trading above its 200-day and 50-day moving average since late August.
PODD released its Q3 earnings results on Nov. 7, and shares of PODD soared 9.4% the following day. Its revenue of $543.9 million and adjusted earnings of $0.90 per share surpassed the Wall Street estimates by a significant margin. Moreover, a 26.4% year-over-year growth in Insulet’s Omnipod revenues led to a notable 25.7% annual rise in its top-line figure. A 353-bps operating margin expansion and a 155-bps gross margin expansion led to a remarkable 26.8% year-over-year growth in its adjusted EPS figure.
Additionally, noting its strong Q3 performance, the company raised its full-year 2024 revenue guidance to 20%-21% and its Omnipod revenue growth projection to 21%-22%. This might have further bolstered investor confidence.
PODD has matched its rival, Tandem Diabetes Care, Inc.’s (TNDM) 20.4% gain over the past 52 weeks and has significantly outperformed TNDM’s nearly 8.1% decline over the past six months.
Looking at Insulet’s recent outperformance, analysts remain strongly optimistic about its prospects. The stock has a consensus rating of “Strong Buy” from the 21 analysts covering it, and the mean price target of $290.55 suggests a modest 9.4% premium to its current levels.
