Insulin Device Maker Has Analysts Turning Bullish

Medical devices maker Insulet (PODD) counts its revenue growth among its strong points. Insulet stock is today's selection for IBD 50 Stocks To Watch.

Third-quarter sales accelerated from the previous quarter and increased 26% from the prior year to $543.9 million. Earnings grew 27% to 90 cents per share after a 45% increase in the second quarter.

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Insulet gapped up after third-quarter results were announced Nov. 7, breaking out from a flat base's buy point of 243.98, according to chart pattern recognition tools in IBD MarketSurge. The stock then held its gains through several weeks of tight price action.

The past few weeks, the stock has been finding support at the 10-week moving average now and offers an entry around 262.60.

For the fourth quarter, the company forecast sales to rise 14% at the midpoint. For the full year, the company raised its revenue guidance to 21% from 19% at the higher end of a range. Analysts polled by FactSet see sales growth continuing into the fourth quarter with a 14% growth estimate or $582.5 million in sales.

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Analysts Raise Price Target For Insulet

Insulet makes wearable devices to manage insulin delivery for patients with diabetes. Sales growth has ranged between 20% and 38% over the past eight quarters.

Earnings growth has ranged from 21% to 169%, with the best performance coming in Q4 of 2023 and Q1 of 2024. The stock holds an ideal EPS Rating of 99 while the Composite Rating of 95 is also impressive. The stock has outperformed 89% of other stocks in the Investor's Business Daily database.

Funds hold the vast majority of shares outstanding. According to MarketSurge data, fund ownership stands at 72% for Insulet stock. The Accumulation/Distribution Rating, which tracks price and volume action over the most recent 13 weeks, is also a healthy B.

On Friday, TD Cowen analysts raised their price target to 324 from 264 while maintaining a buy rating on the stock.

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Within the IBD Mutual Fund Index, the Federated Hermes Kaufmann Small Cap Fund (FKASX) and the Artisan Mid Cap Fund (ARTMX) hold shares of Insulet.

Insulet ranks third in the medical devices group, according to IBD Stock Checkup.

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