While the broader market has struggled with the S&P 500 down 1.8% since December 2024, Insulet has surged ahead as its stock price has climbed by 18.9% to $318.02 per share. This was partly thanks to its solid quarterly results, and the run-up might have investors contemplating their next move.
Is now still a good time to buy PODD? Or are investors being too optimistic? Find out in our full research report, it’s free.
Why Are We Positive On PODD?
Revolutionizing diabetes care with its tubeless "Pod" technology, Insulet (NASDAQ: PODD) develops and manufactures innovative insulin delivery systems for people with diabetes, primarily through its Omnipod product line.
1. Constant Currency Revenue Propels Growth
We can better understand Patient Monitoring companies by analyzing their constant currency revenue. This metric excludes currency movements, which are outside of Insulet’s control and are not indicative of underlying demand.
Over the last two years, Insulet’s constant currency revenue averaged 26.6% year-on-year growth. This performance was fantastic and shows it can expand quickly on a global scale regardless of the macroeconomic environment. 
2. Outstanding Long-Term EPS Growth
We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
Insulet’s EPS grew at an astounding 113% compounded annual growth rate over the last five years, higher than its 23.1% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
3. Increasing Free Cash Flow Margin Juices Financials
Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.
As you can see below, Insulet’s margin expanded by 21.9 percentage points over the last five years. The company’s improvement shows it’s heading in the right direction, and we can see it became a less capital-intensive business because its free cash flow profitability rose more than its operating profitability. Insulet’s free cash flow margin for the trailing 12 months was 13.3%.
Final Judgment
These are just a few reasons why we think Insulet is a great business, and with its shares beating the market recently, the stock trades at 72.2× forward P/E (or $318.02 per share). Is now the time to initiate a position? See for yourself in our full research report, it’s free.
Stocks We Like Even More Than Insulet
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
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