With Wall Street expecting 56% earnings growth next year and two new acquisitions locked in, insulin delivery innovator Insulet is poised to pop — again. PODD stock soared in huge volume last month on news it would join the S&P 500, replacing the collapsed SVB Financial in the aftermath of the bank crisis.
Having secured a spot on the IBD Breakout Stocks Index, Insulet now trades just below a new buy point. The stock has flashed several weeks of tight action.
Sporting a strong 97 Composite Rating, PODD stock joins peers Lantheus and Dexcom in the medical products group. The group ranks in the top 10 among the 197 industries IBD tracks.
Insulet is on tap to report Q1 earnings on May 4. Analysts expect a 69% slowdown for the quarter, leading to just a 5% EPS gain for the full year. But for 2024, Wall Street sees Insulet pumping out 56% revenue growth.
Over the last eight quarters, the insulin delivery leader has posted solid double-digit sales growth, rising from $252 million in Q1 2021 to nearly $370 million in Q4 of last year.
See Who Joins PODD Stock On The IBD Breakout Stocks Index
Insulet Expands Omnipod Platform
Founded in 2000, Insulet continues to build on its revolutionary Omnipod Insulin Management System, further enhancing insulin pump therapy. To simplify life for diabetics, the Omnipod platform provides a line of tubeless, wearable, pod-based insulin management systems. The system offers a unique alternative to traditional insulin delivery methods.
Insulet provides a wearable design and tubeless disposable Pod that enables up to three days of nonstop insulin delivery, without the need to see or handle a needle. Its flagship Omnipod 5 Automated Insulin Delivery System integrates with a continuous glucose monitor to manage blood sugar with no multiple daily injections or finger pricks. Monitoring can be done via a smartphone or Omnipod 5 Controller.
In February, Insulet made two acquisitions to further its focus on automated insulin delivery technology. It acquired the assets of Automated Glucose Control and strengthened its intellectual-property portfolio by buying assets related to the pump-based automated insulin delivery technologies of Bigfoot Biomedical.
PODD Stock Sets Up After Joining S&P 500
Insulet jumped more than 10% during the week ended March 17 as the collapse of SVB Financial led to PODD stock's addition to the benchmark index. Volume spiked 469% above average for the week.
Since then, Insulet has traded within a tight range, giving its stock chart the look a tightly wound coil ready to spring higher. After spiking on the S&P 500 news, the relative strength line has moved sideways as PODD stock digests its gains.
Q1 earnings next month could spark fresh gains. But as always, buying just before earnings is risky. Investors looking to start a position in PODD stock can minimize that risk by waiting to see how Insulet reports and how Wall Street reacts before taking on any significant exposure.
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Follow Matthew Galgani on Twitter at @IBD_MGalgani.
