Insulet Corporation Shows Strong Performance in Insulin Delivery Market

Insulet Corporation (PODD), valued at $18.4 billion, is at the forefront of developing advanced insulin delivery systems for those with insulin-dependent diabetes. Its products, such as the Omnipod Insulin Management System, allow users to manage their insulin discreetly and easily through innovative solutions like Omnipod 5, Omnipod DASH, and Omnipod GO.

Stock Performance Exceeds Market Standards

In the past year, shares of Insulet have outperformed the broader market. Over the last 52 weeks, PODD has increased 41.8%, compared to the S&P 500 Index ($SPX)’s 32.1% gain. Yet, in 2024, PODD shares are showing a 22.8% gain, trailing behind SPX’s 26.2% year-to-date performance.

PODD Stands Strong Against Industry Benchmarks

When compared to the Health Care Select Sector SPDR Fund’s (XLV) 11.5% return over the past year, Insulet’s performance remains robust, also outpacing the fund’s 7.2% year-to-date return.

Strong Quarterly Results Boost Share Prices

A strong quarterly earnings report on Nov. 7 led Insulet’s shares to jump by 9.4%. The company reported revenue of $543.9 million and an adjusted EPS of $0.90, both of which surpassed analysts’ expectations. Reflecting an optimistic outlook, Insulet has adjusted its full-year 2024 revenue growth forecast to 20%-21% and projected a 21%-22% increase in Omnipod revenue. Support from the FDA’s recent approval of Omnipod 5 for type 2 diabetes has further fueled investor confidence, alongside expectations of increased customer additions later this year.

Analysts Optimistic About Future Earnings

For the current fiscal year ending in December, analysts anticipate Insulet will report an EPS of $3.22, marking a 17.1% increase year-over-year. The company’s record shows a mixed history concerning earnings surprises, beating estimates in three out of the last four quarters.

Strong Buy Consensus Among Analysts

The consensus among 21 analysts covering PODD is a “Strong Buy,” with 17 “Strong Buy” ratings, one “Moderate Buy,” and three “Holds.” This outlook has slightly improved compared to three months ago, when there were 16 “Strong Buy” ratings.

Upward Price Target Set by Morgan Stanley

On Nov. 12, Morgan Stanley raised Insulet’s price target to $317, the highest on the Street, while maintaining an “Overweight” rating. This increase is attributed to strong Q3 results, solid growth potential, notable cash flow, and expected future catalysts. Investors see this as indicating a potential upside of almost 19% from current price levels.

Current Trading Context

Presently, PODD is trading below the average price target of $277.85.

On the date of publication, Sohini Mondal did not hold any positions in the mentioned securities. All information in this article is for informational purposes only. For further details, please consult the Barchart Disclosure Policy here.

The views expressed in this article are those of the author and may not reflect the views of Nasdaq, Inc.