Is it the Right Time to Add Insulet Stock to Your Portfolio?

Insulet PODD is well-poised to grow in the coming quarters due to the strength of its Omnipod 5 platform. The company is strongly executing against its long-term priorities to drive penetration, deepen competitive advantage, unlock new opportunities and scale profitably. Solid financial health further adds to the stock’s appeal. However, macroeconomic impacts as well as sole reliance on Omnipod raise concerns for Insulet’s operations.

In the past year, this Zacks Rank #1 (Strong Buy) stock has risen 10.6%, outperforming the industry’s 1.5% growth. Meanwhile, the S&P 500 composite has gained 18.9% in the same time frame.

The developer, manufacturer and distributor of insulin delivery systems has a market capitalization of $20.19 billion. The company’s earnings yield of 1.7% favorably compares to the industry’s 0.2% yield. PODD’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 17.8%.

Let’s delve deeper.

Upsides for Insulet

Omnipod 5 Is Gaining Market Share: Insulet’s game-changing Omnipod 5 stands out as 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. In the third quarter of 2025, international Omnipod revenues crossed $200 million for the first time, driven by the continued rollout of Omnipod 5. Further, positive price/mix realization also contributed to performance as customers continue to shift from Omnipod DASH to Omnipod 5.

In established markets like the U.K., France and Germany, Insulet is experiencing strong growth supported by the introduction of the latest sensor integration. U.S. Omnipod revenues grew 25.6% above the high end of the company’s guidance range, driven by continued demand for Omnipod 5 across Type 1 and especially among Type 2 customers. The Type 2 indication has significantly expanded Insulet’s total addressable market by making Omnipod 5 commercially available to more than 5.5 million people in the United States.

Progress With Strategic Actions: Insulet continues to drive both year-over-year and sequential growth in new customer starts across all its strategic growth areas: U.S. Type 1, U.S. Type 2 and international. On the market development front, the company is leveraging its unique pay-as-you-go pharmacy access. Further, Insulet is ramping up its commercial investments, particularly focused on demand generation. These include direct-to-consumer (DTC) campaigns, both digitally and in mass media, to enhance global brand awareness.

In addition, Insulet is investing in platform innovation to maintain and expand its technology advantage. Omnipod 5 with Dexcom’s G6 and G7 and with Abbott’s FreeStyle Libre 2 Plus sensor integrations have already launched, while Libre 3 is coming in 2026. Further, the Omnipod 5 App for iPhone with G7 compatibility is now available to all U.S. users. The company has also completed recruitment for the STRIVE pivotal trial for the next-generation hybrid closed loop and for the EVOLUTION 2 feasibility study for a fully closed loop in Type 2.To drive global scale,Insulet is increasing capacity investments at the Acton and Malaysia facilities, and integrating AI and cloud-based tools to streamline and scale service operations.

Strong Solvency: Insulet exited the third quarter of 2025 with cash and cash equivalents of $757.4 million and current debt of $80 million. This robust financial stability appears highly promising, especially during prolonged periods of macroeconomic instability. Long-term debt totaled $935 million, down 0.4% sequentially.

Concerns for Insulet

Economic Uncertainty Hampers Growth: 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. In addition, the company continues to experience challenges stemming from the global supply-chain disruption. The company’s reliance on third-party suppliers, especially in China, could face potential risks from political or financial instability, labor unrest, and rising tariffs. The reinstatement of China tariffs is expected to result in higher product costs during the remainder of 2025.

Sole Reliance on Omnipod System: Insulet’s financial results continue to largely depend on the performance of its lead product — Omnipod System. Per the company, any adverse changes in the market acceptance of the product or worsening of the factors that negatively influence the sale will dent the company’s financials majorly. Meanwhile, as the company continues to expand into new markets with Omnipod 5, it also faces the challenge of adverse currency fluctuations hurting revenues and profitability.

PODD Stock Estimate Trend

The Zacks Consensus Estimate for Insulet’s 2025 earnings per share (EPS) has increased 6.3% in the past 30 days.

The Zacks Consensus Estimate for the company’s 2025 revenues is pegged at $2.69 billion. This suggests a 30% rise from the year-ago reported number.

Other Key Picks

Some other top-ranked stocks in the broader medical space are Phibro Animal Health PAHC, BrightSpring Health Services BTSG and Quest Diagnostics DGX.

Phibro Animal Health has an earnings yield of 7.4% compared to the industry’s 0.2% yield. Shares of the company have surged 80.2% in the past year compared with the industry’s 1.5% growth. PAHC’s earnings outpaced estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 20.8%.

PAHC sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

BrightSpring Health Services, carrying a Zacks Rank #2 (Buy), has an estimated long-term earnings growth rate of 53.3% compared with the industry’s 15.5% growth. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 45.1%. BTSG shares have surged 116.1% compared with the industry’s 6.8% growth in the past year.

Quest Diagnostics, carrying a Zacks Rank #2, has an earnings yield of 5.6% compared with the industry’s 5% yield. Shares of the company have jumped 15% compared with the industry’s 6.1% growth. DGX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 2.5%. 

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

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