Insulin pump maker Insulet is Monday's pick for IBD 50 Growth Stocks To Watch from Investor's Business Daily. Among medical device companies, Insulet stock is forming a base while showing relative strength.
The medical device company reversed higher amid Monday's volatile market action after sinking at the session's open. Insulet holds a 3-year earnings growth rate of 109% according to IBD Stock Checkup.
The IBD 50 stock tested and rebounded off its 200-day moving average for a second straight day Monday, but remains below its 50-day moving average.
Insulet makes Omnipod, which it calls an insulin management system. Omnipod is a tubeless, waterproof wearable device that delivers insulin with the touch of a button to people with diabetes. Its three-part system consists of the Pod, the Omnipod 5 App and an integrated continuous glucose monitor sensor.
On Monday, reports showed that Insulet launched its Omnipod 5 Automated Insulin System in Canada for use in people with type 1 diabetes ages two years and above. And it was approved for use in Australia on March 18. The medical device company also plans to expand Omnipod into Belgium, Israel, and Switzerland in 2025.
Of medical device companies, it ranks No. 5 out of 126 stocks in the Medical-Products group. The group holds the 71st spot out of the 197 industry groups that IBD tracks.
What To Do When Growth Stocks Backtrack To Test Buy Points
Insulet Stock Outpaces 92% Of Stocks
Insulet stock holds a 92 IBD Relative Strength Rating, meaning it has outperformed 92% of stocks in the IBD database over the last 12 months.
The medical device stock is forming what would normally be an early-stage consolidation pattern with a 289.46 buy point, according to MarketSurge pattern recognition.
Shares are showing fairly wide spreads within the 8-week long base. The stock holds a 21-day Average True Range of 4.3% — IBD looks for stocks with a 5% or less ATR.
Investors should be cautious of breakouts and new buys during the current market correction and should follow risk management rules, including cutting losses at 7%. Be sure to read the daily IBD Big Picture column for current market analysis.
Its relative strength line has rebounded from March lows and reached a 52-week high as shown by the blue dot on its chart.
Insulin Pump Maker Shows Steady Sales Growth
Insulet topped fourth-quarter profit and sales estimates on Feb. 20, but earnings fell 18% vs. a robust quarter a year ago. Its sales growth slowed to 17% in the fourth quarter, but revenue has grown an average 26% over the last eight quarters.
Full-year 2025 profit estimates show 30% growth, followed by 25% in 2026.
Insulet is set to report its first-quarter earnings on May 8. It also plans to hold an investor day event on June 5.
Mutual funds own a hearty 72% of shares with three IBD Mutual Find Index names holding shares, including a new position by Fidelity Contrafund in the March quarter.
Insulet holds a Composite Rating of 95 out of best-possible 99. Its Earnings Per Share Rating stands at 89.
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