Insulet Gains 77.2% in a Year: What's Driving the Rally?

Insulet Corporation PODD has witnessed strong momentum in the past year. Shares of the company have risen 77.2%, outperforming 4.6% growth of the industry during the same time frame. The S&P 500 Composite has increased 14.3%.

With healthy fundamentals and strong growth opportunities, this Zacks Rank #3 (Hold) company appears to be a solid wealth creator for its investors at the moment.

Insulet develops, manufactures and markets the Omnipod System — an innovative, discreet and easy-to-use continuous insulin delivery system for people with insulin-dependent diabetes. The Omnipod System consists of the Omnipod Insulin Management System (Omnipod) and the Omnipod DASH Insulin Management System (Omnipod DASH), a next-generation digital mobile Omnipod platform.

The company reports revenues under three segments — U.S. Omnipod, International Omnipod and Drug Delivery. The Drug Delivery business offers ties with pharmaceutical and biotechnological companies to use a customized form of the Omnipod System to deliver a drug at a certain administered volume and over a specified period of time.

Factors Favoring PODD’s Share Price Growth

Insulet’s share price is trending upward, prompted by strategic market expansion efforts. In 2024, Insulet received FDA clearance for type 2 label expansion for Omnipod 5. Since then, Omnipod 5 was launched in France and the Netherlands, and in January 2025, it was introduced in five additional countries — Italy, Denmark, Finland, Norway, and Sweden. It was also launched in Australia in March 2025.

Additionally, the strong performance of the Omnipod 5 system is encouraging. Omnipod 5 is the only FDA-cleared, fully disposable pod-based AID system. The Type 2 indication has significantly expanded the total addressable market for Insulet by making the Omnipod 5 commercially available to more than 5.5 million people in the United States. In line with this, Omnipod 5 maintained strong momentum in new customer starts in the United States and grew sequentially as well as year over year in the second quarter of 2025. This optimism, driven by a solid second-quarter performance and increasing revenues from all reportable business segments, is expected to contribute further.

Insulet’s focus on delivering consumer-focused innovation looks encouraging. In lieu of this, the company recently announced a limited market release of Omnipod Discover in the United States. Omnipod Discover is a digital platform that provides personalized data management, insulin usage insights, and learning materials to optimize patient engagement and outcomes.

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In terms of solvency, Insulet exited the second quarter of 2025 with cash and cash equivalents of $1.12 billion and current debt of $461 million. This robust financial stability appears highly promising, especially during the prolonged period of macroeconomic issues. Additionally, the company reported a second-quarter operating profit of $121.1 million, which increased 122.2% year over year, with the operating margin expanding 750 bps. These factors have positively impacted the stock, contributing to its rise.

Factors That May Offset PODD’s Gains

Insulet’s business remains vulnerable to macroeconomic volatility, including the conflict between Russia and Ukraine, supply-chain and logistics disruptions. Further, the implementation of tariffs by the new U.S. government is expected to result in higher product costs during the remainder of 2025. In the second quarter of 2025, selling, general & administrative expenses rose 15.8% year over year.

Also, Insulet operates in a highly competitive environment. Competitive and regulatory conditions in the markets in which Insulet operates constrain its ability to adopt strategies like price increases or other actions that drive up costs.

A Look at PODD’s Estimates

The Zacks Consensus Estimate for 2025 EPS has moved north 6% to $4.59 in the past 30 days.

Insulet has an earnings yield of 1.4% against the industry’s -0.8%. 

Stocks to Consider

Some better-ranked stocks in the broader medical space are Envista NVST, Boston Scientific BSX and IDEXX Laboratories IDXX.

Estimates for Envista’s 2025 EPS have increased 7.6% in the past 30 days. Shares of the company have rallied 16.7% in the past year compared with the industry’s 5.2% growth. Its earnings yield of 5.4% has also outpaced the industry’s -0.9% yield.

NVST 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, currently carrying a Zacks Rank #2 (Buy), has an earnings yield of 2.9% against the industry’s -0.8%. BSX shares have rallied 31.3% in the past year. In the last reported quarter, it posted an earnings surprise of 4.2%.

IDEXX, carrying a Zacks Rank #2 at present, has an earnings yield of 2% against the industry’s -4.6%. Shares of the company have jumped 29.1% in the past year against the industry’s 14% decline. In the last reported quarter, it delivered an earnings surprise of 9.7%.

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This article originally published on Zacks Investment Research (zacks.com).

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