Insulet Stock Gains From Expansion Strategies, Innovation

Insulet’s PODD robust execution to expand the Omnipod 5 platform globally is a tailwind. The company is also capitalizing on the significant growth opportunities in the Type 2 diabetes space. PODD carries a Zacks Rank #2 (Buy) currently.Factors Driving PODD StockInsulet is making significant strides in its key strategic imperatives to help patients manage diabetes efficiently.  The company’s first strategy revolves around increasing access and awareness of Omnipod products. In the second quarter of 2024, Omnipod 5 integrated with Dexcom’s G6 CGM significantly, contributing to the 27% growth in the United States.On the last earnings call, Insulet hinted at launching Omnipod 5 with Abbott’s Freestyle Libre 2 Plus sensor in the United States by the end of this year. The expansion is expected to attract U.S. customers who use Libre sensors and could drive further demand for Omnipod 5, similar to the early success observed with Libre 2 plus internationally. Further, Omnipod DASH is driving strong new customer starts in the U.S. type 2 diabetes market. The company continues to drive increased awareness for Omnipod through its direct-to-consumer advertising campaign.Insulet’s second strategy focuses on delivering consumer-focused innovation. The company is making promising progress toward achieving FDA clearance for Omnipod 5 for type 2 diabetes patients. This year, the company will expand on the Omnipod 5 platform by bringing new sensor integrations, launching the system in new geographies, and extending the phone control offering. The initial U.S. launch of the Omnipod 5 iOS app with G6 was a key milestone in the second quarter of 2024 and has been garnering positive feedback. The broad innovation agenda laid out for 2024 is poised to reinforce Insulet’s position as a market leader. A report by Grand View Research forecasts the global diabetes device market to witness a CAGR of 7.5% through 2023-2030. The expansion will be driven by factors like the growing prevalence of diabetes, rising obesity rates and the increasing usage of insulin-delivery devices. Major manufacturers are banking on technological advancements and product innovations to secure a significant portion of the market. Insulet, too, is well-positioned for substantial gains, capitalizing on these trends. Through strategic acquisitions such as Automated Glucose Control LLC (AGC) assets and Bigfoot’s pump-based AID technologies in 2023, the company has meaningfully advanced its diabetes business.Insulet Corporation Price Insulet Corporation price | Insulet Corporation QuoteNotably, Insulet stated that approximately 40% of the Type 1 diabetes population in the United States and even less of the international type 1 diabetes population use insulin pump therapy. Furthermore, an even smaller portion of the U.S. and international insulin-intensive type 2 diabetes population use insulin pump therapy. The combined patient population using either intensive insulin therapy or basal insulin is roughly three times the size of the type 1 population. These factors, therefore, present a significant available market for its Omnipod platform globally. Overall, Insulet sees massive market opportunities, both in furthering type 1 MDI penetration as well as the type 2 market.Over the past three months, shares of PODD have gained 23.6% compared with the industry’s 11.8% growth. The company’s consistent efforts to expand in niche markets and consumer-focused innovation are expected to help the stock continue its uptrend in the coming days.Downside Risks for PODDInsulet is incurring higher costs associated with Omnipod 5 production. Added to this, supply-chain disruptions and labor shortages continue to put pressure on margins. In the second quarter of 2024, selling, general & administrative expenses rose 24.4% 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 also continue to persist.The continuing worldwide macroeconomic and geopolitical uncertainty may reduce demand for Insulet’s products, intensify competition, exert pressure on prices, dent supply, and lengthen the sales cycle. Unfavorable product mix, U.S. manufacturing ramp, inflation and supply chain headwinds affected the company’s business performance throughout 2023.Insulet continues to experience challenges stemming from disruption in the global supply chain. The company’s reliance on third-party suppliers, especially in China, could face potential risks from political or financial instability and labor unrest, among others. We are particularly cautious as growth could moderate further if the economic scenario worsens. While the company continues to expand into new markets with Omnipod 5, it also faces the challenge of adverse currency fluctuations hurting its revenues and profitability.Other Key PicksSome other top-ranked stocks in the broader medical space are Boston Scientific BSX, Globus Medical GMED and ResMed RMD, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Boston Scientific shares have surged 58.3% in the past year. Estimates for the company’s earnings per share (EPS) have jumped 2.5% to $2.46 for 2024 and 0.4% to $2.72 for 2025 in the past 30 days. BSX’s earnings beat estimates in each of the trailing four quarters, delivering an average beat of 8.3%. In the last reported quarter, it posted an earnings surprise of 8.6%.Estimates for Globus Medical’s 2024 EPS have remained constant at $2.84 in the past 30 days. Shares of the company have surged 61% in the past year compared with the industry’s growth of 24.7%. GMED’s earnings surpassed estimates in each of the trailing four quarters, with the average beat being 12.1%. In the last reported quarter, it delivered an earnings surprise of 10.3%.Estimates for ResMed’s fiscal 2025 EPS have risen 2.2% to $9.22 in the past 30 days. Shares of the company have surged 58.8% in the past year compared with the industry’s 29.2% growth. RMD’s earnings surpassed estimates in each of the trailing four quarters, with the average beat being 6.4%. In the last reported quarter, it delivered an earnings surprise of 8.4%.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 Boston Scientific Corporation (BSX): Free Stock Analysis Report ResMed Inc. (RMD): Free Stock Analysis Report Insulet Corporation (PODD): Free Stock Analysis Report Globus Medical, Inc. 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