Insulet Corporation (PODD): A Bull Case Theory

We came across a bullish thesis on Insulet Corporation on The Wealth Dynasty Report’s Substack. In this article, we will summarize the bulls’ thesis on PODD. Insulet Corporation's share was trading at $255.81 as of January 30st. PODD’s trailing and forward P/E were 74.37 and 41.84 respectively according to Yahoo Finance.

Insulet Corporation develops, manufactures, and sells insulin delivery systems for people with insulin-dependent diabetes in the United States and internationally. PODD is emerging as a high-quality growth company that has finally paired strong top-line momentum with disciplined cash management and balance sheet strength. The company sits on a robust liquidity position, with nearly $3 in current assets for every $1 of short-term obligations, supported by sharply accelerating cash generation. Operating cash flow surged to $430 million in 2024 from $146 million the prior year, while free cash flow jumped to $305 million, allowing Insulet to build a cash war chest of roughly $675 million.

This financial inflection underpins the investment case as Insulet scales its flagship Omnipod system, a tubeless, wearable insulin pump that integrates seamlessly with smartphones and continuous glucose monitors. The product’s subscription-like model, requiring new Pods every three days, creates highly recurring revenue and strong customer stickiness. About 74% of sales are generated in the U.S., with international markets still in early expansion.

Operationally, recent catalysts have meaningfully expanded Insulet’s runway. A new Malaysia manufacturing facility is improving capacity and margins, while FDA clearance of Omnipod 5 for type 2 diabetes in the U.S. unlocks a substantially larger addressable market. International rollouts across Europe and a decisive $282 million trade secret victory against EOFlow further strengthen its competitive moat. Financially, revenue reached $2.07 billion in 2024, up 22% year over year, while net income more than doubled to $418 million as gross margins approached 70% and operating margins rose to 15%.

At $316 per share, Insulet trades at a premium multiple, but one that has compressed meaningfully as earnings and cash flow scale. With management targeting further margin expansion and sustained high-teens revenue growth, the company appears positioned to compound earnings over the coming years. While competition, reimbursement pressure, regulatory risk, and debt refinancing remain key risks, Insulet’s liquidity, recurring revenue model, and expanding market opportunity support a compelling long-term growth narrative.

Previously, we covered a bullish thesis on Medtronic plc (MDT) by Magnus Ofstad in April 2025, which highlighted the company’s transformation, strategic realignment, and potential value unlock from its diabetes spin-off. MDT’s stock price has appreciated by approximately 27.61% since our coverage as the thesis played out. The Wealth Dynasty Report shares a similar but emphasizes Insulet Corporation’s high-growth recurring revenue and robust liquidity, highlighting a different path to value creation.

Insulet Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 56 hedge fund portfolios held PODD at the end of the third quarter which was 53 in the previous quarter. 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.