Strength Seen in Insulet (PODD): Can Its 7.2% Jump Turn into More Strength?

Insulet PODD shares soared 7.2% in the last trading session to close at $264.72. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 0.7% gain over the past four weeks.

Insulet recorded a strong price rise on investors’ optimism surrounding its impending first-quarter 2025 financial results, which is slated to release on May 8 post the closing bell. The Zacks Consensus Estimate for the first quarter revenue suggests a growth of 22.7% and earnings growth of 11%. Additionally, market is also upbeat about the company’s launch of Omnipod 5 AID system in Canada, with Dexcom G6 and G7 CGM sensor compatibility.

This maker of insulin infusion systems is expected to post quarterly earnings of $0.81 per share in its upcoming report, which represents a year-over-year change of +11%. Revenues are expected to be $542.11 million, up 22.7% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Insulet, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on PODD going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Insulet is part of the Zacks Medical - Products industry. BioLife Solutions, Inc. BLFS, another stock in the same industry, closed the last trading session 10.4% higher at $22.79. BLFS has returned -22.5% in the past month.

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

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