Is Insulet Stock Underperforming the Nasdaq?

Acton, Massachusetts-based Insulet Corporation (PODD) is a medical technology company that specializes in innovative insulin delivery solutions for people with diabetes. Valued at a market cap of $20.5 billion, the company is best known for its Omnipod® Insulin Management System, a tubeless, wearable insulin pump that delivers continuous insulin without the need for external tubing.

Companies valued at $10 billion or more are typically classified as “large-cap stocks,” and PODD fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the medical devices industry. The company primarily serves individuals with Type 1 diabetes and insulin-dependent Type 2 diabetes, and its technology-driven, recurring-revenue model positions it as a key player in the global diabetes care market.

This healthcare company has dipped 17% below its 52-week high of $354.88, reached on Nov. 20. Shares of PODD have declined 11.2% over the past three months, underperforming the Nasdaq Composite’s ($NASX) 2.9% rise during the same time frame.

In the longer term, PODD has gained 11.1% over the past 52 weeks, lagging behind NASX’s 14% uptick over the same time frame. Moreover, on a YTD basis, shares of PODD are up 12.9%, compared to NASX’s 19.1% return.

To confirm its bearish trend, PODD has been trading below its 200-day moving average since early December and has remained below its 50-day moving average since late November.

Shares of Insulet surged 2.9% after its better-than-expected Q3 earnings release on Nov. 6. The company’s total revenue climbed 29.9% year-over-year to $706.3 million, handily surpassing consensus estimates by 4.4%. Additionally, its adjusted EPS rose 37.8% from the year-ago quarter to $1.24, topping analyst expectations of $1.13. Noting this strong performance, PODD raised its fiscal 2025 revenue growth guidance in the range of 28% to 29%, further bolstering investor confidence.

PODD has also lagged behind its rival, Medtronic plc (MDT), which soared 20% over the past 52 weeks 22.2% on a YTD basis.

Despite PODD’s recent underperformance, analysts remain strongly optimistic about its prospects. The stock has a consensus rating of “Strong Buy” from the 25 analysts covering it, and the mean price target of $381, suggests a 29.4% premium to its current price levels.

On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com