Insulet Stock Surges 37.4% in 12 months: What's Driving the Rally?

Insulet PODD has seen impressive momentum in the past year, with its shares soaring 37.4%. It has significantly outperformed the industry’s 0.5% fall and the S&P 500 composite’s 17.5% gain.Presently carrying a Zacks Rank #3 (Hold), the renowned medical device company is solidifying its Diabetes market leadership through Omnipod 5. Commercial efforts to accelerate Omnipod 5 adoption and capture a larger market share, as well as newer product innovation, also add to the stock’s appeal.Acton, MA-headquartered Insulet manufactures and sells its proprietary continuous insulin delivery systems for people with insulin-dependent diabetes. The company’s Omnipod platform offers continuous insulin delivery that provides all the benefits of insulin pump therapy in a unique way without the need for external tubing required with conventional pumps. Omnipod products are presently available in 25 countries, including Qatar, Turkey and Switzerland. Insulet also continues to advance work to improve the Omnipod 5 algorithm and develop next-generation automated insulin delivery (AID) products.Factors Favoring PODD’s GrowthThe rally in the share price can be linked to the company’s strong momentum with Omnipod 5, the only FDA-cleared, fully disposable pod-based AID system. Product attributes such as on-body wearability, simplicity, ease of use, and broad accessibility continue to drive its rapid adoption and overall market growth. Recent milestones include the full U.S. launch of the Omnipod 5 App for iPhone with Dexcom G7 CGM system integration. Additionally, Omnipod 5 is compatible with Abbott’s FreeStyle Libre 2 Plus in the United States. Omnipod DASH continues to gain traction in the U.S. type 2 diabetes market, now accounting for about 30% of new starts. More than 85% of new U.S. users transitioned from multiple daily injections (MDI), supported by strong direct-to-consumer marketing. In August 2024, Insulet received FDA clearance for type 2 label expansion for Omnipod 5.Image Source: Zacks Investment ResearchFurthermore, Omnipod 5 continues to drive strong adoption across all market segments. Following successful launches in France and the Netherlands last year, the product was introduced in additional countries such as Italy, Denmark, Finland, Norway, Sweden and Australia. In February 2025, the company announced a limited U.S. market release of Omnipod Discover —a digital platform for personalized data management, insulin usage insights and learning materials to optimize patient engagement and outcomes.Moreover, investors are also upbeat about Insulet’s robust growth potential in the underpenetrated diabetes market. 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 uses insulin pump therapy.  The company is investing prudently in commercial expansion and market access, including salesforce growth, new territory creation, and targeted pediatric center entry. Its robust sales, marketing and channel capabilities give it a competitive edge in serving the growing diabetes population.Risks for PODDThe 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. Moreover, given its sole reliance on Omnipod, any adverse changes in market acceptance of the product or worsening of factors that negatively influence sales will dent the company’s financials significantly. A Glance at PODD’s EstimatesThe Zacks Consensus Estimate for Insulet’s 2025 and 2026 earnings per share (EPS) is expected to increase 42.9% and 24.3% year over year, respectively, to $4.63 and $5.76. In the past 60 days, the Zacks Consensus Estimate for the company's 2025 EPS has risen 6.5%. Revenues for 2025 are projected to grow 26.4% to $2.62 billion, while those for 2026 are expected to reach $3.09 billion, indicating an 18.1% improvement.Key PicksSome better-ranked stocks in the broader medical space are Masimo MASI, Boston Scientific BSX and Cardinal Health CAH.Masimo has an earnings yield of 3.8% compared to the industry’s -4.5% yield. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 13.8%. MASI shares have rallied 5% against the industry’s 18.4% drop in the past year.MASI sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Boston Scientific, carrying a Zacks Rank #2 (Buy), has an earnings yield of 3.1% compared with the industry’s 0.5% growth. Shares of the company have risen 18.1% compared to the industry’s 0.5% fall. BSX’s earnings outpaced estimates in each of the trailing four quarters, with the average surprise being 8.1%.Cardinal Health, carrying a Zacks Rank #2, has an estimated long-term earnings growth rate of 12.5% compared with the industry’s 9.7% growth. Shares of the company have rallied 36.3%, outpacing the industry’s 2.1% growth. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 9.2%.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.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 Cardinal Health, Inc. (CAH): Free Stock Analysis Report Masimo Corporation (MASI): Free Stock Analysis Report Insulet Corporation (PODD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks