Insulet Corporation: Strong Growth in Diabetes Technology Market
Insulet Corporation (PODD), based in Acton, Massachusetts, is known for its innovative medical devices. With a market valuation of $19.8 billion, the company specializes in developing, producing, and selling insulin delivery systems aimed at those with insulin-dependent diabetes.
PODD Stock Outpaces Market Performance
In the past year, PODD shares have significantly outperformed the overall market. The stock has risen by 53.9%, while the S&P 500 Index ($SPX) has seen a gain of approximately 17.6%. Year-to-date, as of 2025, PODD has increased by 8.6%, surpassing the SPX’s 1.7% increase during the same period.
Against Industry Benchmarks, PODD Excels
Looking closely, PODD’s growth also stands out against the iShares U.S. Medical Devices ETF (IHI), which has appreciated by roughly 11.5% over the past year. However, the ETF has managed a year-to-date gain of 10.9%, while PODD’s returns have been in the single digits recently.
Driving Factors Behind PODD’s Strong Sales
PODD’s impressive performance is largely due to the high demand for the Omnipod 5, not only in the United States but around the world. The company has reported rising sales in drug delivery as well. Recently, Insulet announced the integration of Omnipod 5 with Abbott Laboratories’ (ABT) FreeStyle Libre 2 Plus CGM sensor in the U.S. and has expanded its launch into several European markets, including compatibility with Dexcom’s G6 CGM sensors.
Quarterly Earnings Show Positive Trends
On February 20, PODD reported its fourth-quarter results, with shares rising over 1%. The adjusted earnings per share (EPS) reached $1.15, exceeding Wall Street’s expectation of $1.05. Revenue totaled $597.5 million, surpassing forecasts that anticipated $581.7 million.
Analysts Predict Continued Growth
For the fiscal year ending December 2025, analysts forecast PODD’s EPS to grow by 22.8% to $3.98 on a diluted basis. The company has shown a mixed earnings surprise history, exceeding consensus estimates in three of the last four quarters, but has fallen short on one occasion.
Analysts Remain Optimistic
A survey of 21 analysts covering PODD indicates a consensus rating of “Strong Buy,” which includes 17 “Strong Buy” ratings, one “Moderate Buy,” and three “Holds.”
This positive outlook has remained consistent over the past three months. On February 24, Bernstein maintained its “Outperform” rating on PODD and raised the price target to $335, suggesting a potential upside of 18.2% from current levels.
The average price target of $296.90 indicates a 4.7% premium to PODD’s present price. With the highest target set at $340, analysts predict an upside potential of 19.9%.
On the date of publication, Neha Panjwani did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. For more information, please view the Barchart Disclosure Policy here.
More news from Barchart
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
