Why NASDAQ:PODD Is a Promising High-Growth Stock in the Midst of Consolidation.

In this article we will dive into INSULET CORP (NASDAQ:PODD) as a possible candidate for growth investing. Investors should always do their own research, but we noticed INSULET CORP showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

Growth Examination for NASDAQ:PODD

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:PODD has received a 9 out of 10:

• The Earnings Per Share has grown by an impressive 455.10% over the past year.
• Measured over the past years, PODD shows a very strong growth in Earnings Per Share. The EPS has been growing by 122.39% on average per year.
• Looking at the last year, PODD shows a very strong growth in Revenue. The Revenue has grown by 30.02%.
• PODD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.66% yearly.
• PODD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.56% yearly.
• Based on estimates for the next years, PODD will show a quite strong growth in Revenue. The Revenue will grow by 16.91% on average per year.

Health Examination for NASDAQ:PODD

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:PODD was assigned a score of 5 for health:

• An Altman-Z score of 4.95 indicates that PODD is not in any danger for bankruptcy at the moment.
• With a decent Altman-Z score value of 4.95, PODD is doing good in the industry, outperforming 77.55% of the companies in the same industry.
• PODD's Debt to FCF ratio of 38.79 is fine compared to the rest of the industry. PODD outperforms 69.39% of its industry peers.
• A Current Ratio of 3.51 indicates that PODD has no problem at all paying its short term obligations.
• A Quick Ratio of 2.62 indicates that PODD has no problem at all paying its short term obligations.

How do we evaluate the Profitability for NASDAQ:PODD?

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:PODD scores a 8 out of 10:

• Looking at the Return On Assets, with a value of 7.97%, PODD belongs to the top of the industry, outperforming 89.29% of the companies in the same industry.
• PODD's Return On Equity of 28.16% is amongst the best of the industry. PODD outperforms 97.96% of its industry peers.
• PODD has a Return On Invested Capital of 7.36%. This is amongst the best in the industry. PODD outperforms 85.71% of its industry peers.
• The 3 year average ROIC (4.58%) for PODD is below the current ROIC(7.36%), indicating increased profibility in the last year.
• PODD has a Profit Margin of 12.16%. This is amongst the best in the industry. PODD outperforms 89.29% of its industry peers.
• In the last couple of years the Profit Margin of PODD has grown nicely.
• With an excellent Operating Margin value of 12.96%, PODD belongs to the best of the industry, outperforming 83.67% of the companies in the same industry.
• PODD's Operating Margin has improved in the last couple of years.
• PODD has a Gross Margin of 68.35%. This is in the better half of the industry: PODD outperforms 77.04% of its industry peers.

How do we evaluate the setup for NASDAQ:PODD?

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NASDAQ:PODD is 7:

Although the technical rating is bad, PODD does present a nice setup opportunity. Prices have been consolidating lately and the volatility has been reduced. There is a support zone below the current price at 163.24, a Stop Loss order could be placed below this zone.

More Strong Growth stocks can be found in our Strong Growth screener.

Check the latest full fundamental report of PODD for a complete fundamental analysis.

Check the latest full technical report of PODD for a complete technical analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.