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 Growth

The 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.

Furthermore, 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 PODD

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. 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 Estimates

The 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 Picks

Some 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%.

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

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