Reasons Why Hedge Funds Favor Insulet Corp (PODD)

Insulet Corporation (NASDAQ:PODD) is one of the 12 best Medical Devices stocks to invest in according to Hedge Funds.

As of the close of play on January 28, Insulet Corporation (NASDAQ:PODD) carried a highly bullish consensus view. The stock received coverage from 18 analysts and was assigned 16 Buy ratings and 1 Hold rating. With just 1 Sell rating, it has a consensus 1-year median price target of $369.59, offering more than 43% upside potential from the prevailing level.

On January 9, David Roman from Goldman Sachs also reaffirmed his optimism around Insulet Corporation (NASDAQ:PODD). He assigned a Buy rating to the stock and lowered his price target from $388 to $365. Despite the downward revision, he still sees more than 41% upside potential, which he expects will be in line with company fundamentals. The analyst noted that during 2025, share price movements had diverged from underlying fundamentals. However, during the coming year, he expects valuations to remain closely tied to organic growth prospects.

Insulet Corporation (NASDAQ:PODD) focuses on manufacturing and selling insulin management systems through the Omnipod platform. It offers a disposable tubeless pump called Omnipod Insulin Management System, whose design is specific to insulin-dependent diabetes. The company’s strategy revolves around high-volume automated manufacturing in the US and Malaysia, and contract manufacturing in China.

While we acknowledge the potential of PODD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.