Here's Why You Should Add PODD Stock to Your Portfolio Now

Insulet Corporation’s PODD rapid commercial expansion and increasing market access capabilities for its Omnipod platform are poised to help it grow in the upcoming quarters. The rising adoption of Omnipod 5 also presents a promising growth opportunity. Besides, a sound financial position bodes well for the stock. Meanwhile, adverse macroeconomic impacts raise concerns for Omnipod’s operations.In the past year, this Zacks Rank #2 (Buy) stock has risen 44.2%, outperforming the industry’s 17.8% growth and S&P 500 composite’s gain of 24.2%.The developer, manufacturer and distributor of insulin delivery systems has a market capitalization of $19.67 billion. PODD’s earnings surpassed estimates in three of the trailing four quarters and missed in one, delivering an average surprise of 52.38%.Let’s delve deeper.Upsides for InsuletFocus on Market Expansion and Operational Excellence: Insulet is expanding its global presence in a targeted and strategic manner. The company is now shifting from Omnipod GO to Omnipod 5 as its primary offering for people with type 2 diabetes on basal-only insulin. Omnipod 5 is driving strong customer adoption from all market segments. In 2024, the company made Omnipod 5 available in the United Kingdom, Germany, France and the Netherlands. Insulet is also planning to expand its international offerings with additional sensor of choice by further launching Omnipod 5 integrated with FreeStyle Libre 2 Plus and introducing the integration of G7. Insulet’s strategy of transitioning people from multiple daily injections (MDI) onto Omnipod therapy is driving significant growth in its customer base. In the third quarter, the global new customer base started to grow sequentially and on a year-over-year basis. Moreover, PODD continues to invest prudently in commercial expansion and market access capabilities by gradually expanding the salesforce, creating new territories and entering targeted pediatric centers. Omnipod 5, a New Area of Focus: Insulet’s game-changing Omnipod 5 stands out as the only FDA-cleared, fully disposable pod-based AID system. Product attributes such as on-body wearability, simplicity, ease of use, and broad accessibility are the key drivers of its rapid adoption and successful market growth. On a promising note, the company is rapidly approaching $0.5 billion in international revenues for 2024, driving growth rates above 20%. Despite being in fewer geographies, the achievement underscores the significant potential for continued global growth as Omnipod 5 continues to enter new markets.  Image Source: Zacks Investment ResearchStrong Solvency: Insulet exited the third quarter of 2024 with cash and cash equivalents of $903 million and current debt of $42 million. This robust financial stability appears highly promising, especially during the prolonged period of macroeconomic issues. Debt-to-capital stood at 55.6X at the quarter’s end, indicating a 5.6% sequential improvement. Meanwhile, the times interest earned improved 0.4% sequentially to 8.3X.Downsides for InsuletConcerns Denting Profit Margin: Insulet is incurring higher costs associated with Omnipod 5 production. Added to this, supply-chain disruptions and labor shortages have continued to put pressure on margins. In the third quarter of 2024, selling, general & administrative expenses rose 29.6% year over year, mainly from higher headcount additions to manage routine costs and support commercial and international growth, as well as the new organizational structure. Meanwhile, the risks of inflation negatively impacting gross margins and net income in 2024 continue to persist.PODD Stock Estimate TrendThe Zacks Consensus Estimate for 2025 earnings per share (EPS) has remained unchanged at $3.92 in the past 30 days.The Zacks Consensus Estimate for 2025 revenues is pegged at $2.42 billion, suggesting a 17.9% rise from the year-ago reported number.Other Key PicksSome other top-ranked stocks in the broader medical space are Veracyte VCYT, Omnicell OMCL and ResMed RMD.Veracyte's estimated 2025 earnings growth rate is 65.8% compared with the industry’s 21.9%. Its shares have risen 49.2% in the past year compared with the industry’s 5.5% growth. VCYT’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 520.58%. VCYT carries a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Omnicell, carrying a Zacks Rank #2 (Buy) at present, has an earnings yield of 3.7% compared with the industry’s 9.5%. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 121.74%. OMCL’s shares have risen 15.2% against the industry’s 16.8% decline in the past year.ResMed, carrying a Zacks Rank #2 at present, has an estimated earnings growth rate of 8.9% for fiscal 2025. Its shares have surged 33.4% compared with the industry’s 11.1% growth in the past year. RMD’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.41%. 5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Omnicell, Inc. (OMCL): Free Stock Analysis Report ResMed Inc. (RMD): Free Stock Analysis Report Insulet Corporation (PODD): Free Stock Analysis Report Veracyte, Inc. (VCYT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks