Is INSULET CORP (NASDAQ:PODD) on the Verge of a Major Breakout as a Strong Growth Stock?

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether INSULET CORP (NASDAQ:PODD) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but INSULET CORP has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

Unpacking PODD's Growth Rating

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. PODD boasts a 9 out of 10:

• PODD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.43%, which is quite impressive.
• Measured over the past years, PODD shows a very strong growth in Earnings Per Share. The EPS has been growing by 79.24% on average per year.
• PODD shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.07%.
• PODD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.92% yearly.
• Based on estimates for the next years, PODD will show a very strong growth in Earnings Per Share. The EPS will grow by 20.57% on average per year.
• PODD is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.04% yearly.

Deciphering PODD's Health Rating

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. PODD has received a 7 out of 10:

• PODD has an Altman-Z score of 7.59. This indicates that PODD is financially healthy and has little risk of bankruptcy at the moment.
• PODD has a Altman-Z score of 7.59. This is amongst the best in the industry. PODD outperforms 88.48% of its industry peers.
• PODD's Debt to FCF ratio of 4.70 is amongst the best of the industry. PODD outperforms 81.15% of its industry peers.
• A Current Ratio of 3.58 indicates that PODD has no problem at all paying its short term obligations.
• PODD has a Current ratio of 3.58. This is in the better half of the industry: PODD outperforms 63.35% of its industry peers.
• PODD has a Quick Ratio of 2.76. This indicates that PODD is financially healthy and has no problem in meeting its short term obligations.
• PODD has a Quick ratio of 2.76. This is in the better half of the industry: PODD outperforms 61.78% of its industry peers.

Analyzing Profitability Metrics

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. PODD was assigned a score of 9 for profitability:

• PODD has a better Return On Assets (13.55%) than 94.76% of its industry peers.
• PODD's Return On Equity of 34.52% is amongst the best of the industry. PODD outperforms 98.95% of its industry peers.
• PODD's Return On Invested Capital of 9.49% is amongst the best of the industry. PODD outperforms 91.10% of its industry peers.
• The last Return On Invested Capital (9.49%) for PODD is above the 3 year average (6.40%), which is a sign of increasing profitability.
• PODD has a Profit Margin of 20.19%. This is amongst the best in the industry. PODD outperforms 93.72% of its industry peers.
• PODD's Profit Margin has improved in the last couple of years.
• Looking at the Operating Margin, with a value of 14.91%, PODD belongs to the top of the industry, outperforming 85.34% of the companies in the same industry.
• In the last couple of years the Operating Margin of PODD has grown nicely.
• PODD has a Gross Margin of 69.79%. This is amongst the best in the industry. PODD outperforms 80.10% of its industry peers.

How do we evaluate the setup for PODD?

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 PODD is 7:

Besides having an excellent technical rating, PODD also presents a decent setup pattern. Prices have been consolidating lately. There is a support zone below the current price at 266.35, a Stop Loss order could be placed below this zone.

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

Our latest full fundamental report of PODD contains the most current fundamental analsysis.

Our latest full technical report of PODD contains the most current technical analsysis.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.