PODD: Up 50% in the Past Year, is Insulet Stock a Buy?

Insulet (PODD), a developer, maker, and marketer of insulin management systems, had a stellar year. PODD is up 9% in the past six months and up more than 51% in the past year.

Will PODD’s good fortune continue? Or will profit taking send PODD lower? These are the pressing questions investors are pondering following PODD’s epic upward run.

Below, I delve into the nuances of PODD to provide investors with what might be in store for the stock in the months ahead. Here is a quick look at PODD as it currently stands following a banner year.

PODD Notes of Interest

PODD’s insulin management system consists of a miniature and light self-adhesive tubeless device. The device is paired with the company’s handheld, wireless personal diabetes manager worn on the body several days at a time. The benefit of this system is that it provides painless cannula insertion and the implementation of a blood glucose meter. In other words, just about everyone with insulin-dependent diabetes is a potential PODD customer.

The company’s insulin delivery system has been on the market for more than 15 years, so it certainly has its merits. PODD has an extremely high forward P/E ratio of 408. This high ratio makes it clear PODD is overpriced at $283 per share. The stock’s 52-week high is $306.46, while its 52-week low is $185.24.

The Analyst Take on PODD

Analysts believe PODD is fairly priced. Take a close look at the analysts’ expectations for the stock, and you will find the average target price is $283.12. This could mean that the stock doesn’t have much upside potential as it is currently priced around its average target price.

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Furthermore, PODD’s average analyst price target has decreased nearly $20 across the previous 70 days. Of the 21 analysts who cover PODD, ten rate it a Hold.

POWR Ratings

PODD has an overall grade of C, translating into a Neutral rating in our POWR Ratings system. The stock has grades of C in the Quality, Sentiment, Stability, and Value components. Investors can find out how PODD fares in the Momentum and Growth components can find out by clicking here. PODD is ranked 115th out of 183 stocks in the Medical – Devices & Equipment industry. Click here to find the top stocks in this industry.

Is PODD a Buy?

PODD is not currently a Buy. The stock has a Neutral rating in the POWR Ratings, which means investors should wait until it has a Buy or Strong Buy rating. The stock also has many components grades of C and is not ranked well in its industry. Plus, the stock is highly overvalued at its current price point.

If you are looking for stocks in the Medical – Devices & Equipment industry, consider one of the highly ranked stocks in this industry.

Click here to checkout our Healthcare Sector Report for 2021

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PODD shares were trading at $282.88 per share on Wednesday morning, down $0.54 (-0.19%). Year-to-date, PODD has gained 10.66%, versus a 15.21% rise in the benchmark S&P 500 index during the same period.

About the Author: Patrick Ryan

Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More...