Insulet Corp (NASDAQ:PODD) Fits Minervini’s Trend Template with Strong Growth Momentum

Insulet Corp (NASDAQ:PODD) has been recognized as a possible option for investors focused on high-growth momentum, applying Mark Minervini’s Trend Template strategy. This method blends strict technical screening with fundamental growth indicators to find stocks showing strong upward trends and improving earnings or revenue growth. The process ensures that chosen stocks are not only technically solid but also supported by strong business results, making them appealing for those looking for significant growth potential.

Why PODD Aligns with the Minervini Trend Template

The Minervini Trend Template aims to identify stocks in a clear upward trend with notable relative strength. PODD fits several important conditions:

• Price Above Key Moving Averages: The stock is priced above its 50-day ($298.88), 150-day ($283.19), and 200-day ($277.34) moving averages, confirming a positive long-term trend.
• Rising Moving Averages: The 150-day and 200-day moving averages are both moving higher, supporting the stock’s upward momentum.
• Relative Strength: With a ChartMill Relative Strength (CRS) score of 87.08, PODD performs better than 87% of all stocks, showing strong market leadership.
• Near 52-Week High: The stock is trading within 5% of its 52-week high ($329.33), indicating ongoing positive sentiment.

These technical aspects match Minervini’s approach of concentrating on stocks in Stage 2 uptrends, where the most significant price gains often happen.

Strong Growth Momentum Fundamentals

Beyond technical strength, PODD shows impressive growth metrics, making it a fit for high-growth investors:

• Earnings Growth:

  • TTM EPS Growth: +24.8%
  • Latest Quarterly EPS Growth (Q2Q): +112.7%
  • Forward EPS Estimates (Next Quarter): +28.6%
  • EPS Estimate Beats: The company has exceeded earnings estimates in 3 of the last 4 quarters, with an average beat of 11.6%.

• Revenue Growth:

  • TTM Revenue Growth: +22.1%
  • Latest Quarterly Revenue Growth (Q2Q): +32.9%
  • Forward Revenue Estimates (Next Quarter): +26.3%

• Profit Margins:

  • Latest Quarter Profit Margin: 6.22% (lower than previous quarters but still positive)
  • Full-Year Profit Margin (FY): 20.19%, showing good operational efficiency.

These fundamentals indicate that PODD is not only technically strong but also a business with improving earnings and revenue, a key factor for high-growth momentum investing.

Technical Analysis Overview

According to ChartMill’s technical report, PODD has an overall technical rating of 9 out of 10, reflecting strong positive momentum. Key points include:

• Trend Strength: Both short-term and long-term trends are favorable.
• Support Levels: Solid support areas are at $293.26-$298.88 (moving averages) and $277.29-$284.22 (trend lines).
• Resistance: The next resistance level is near $325.04-$327.48.
• Setup Quality: While the technical rating is high, the setup quality is currently medium (4/10), suggesting investors might consider waiting for a pullback before entering.

Conclusion & Next Steps

PODD offers a strong case for investors using Minervini’s strategy, combining a solid technical uptrend with high-growth fundamentals. Although the stock is currently stretched in the short term, its long-term trend remains strong, backed by solid earnings and revenue growth.

For more high-growth momentum stocks that fit the Minervini Trend Template, check our predefined screen here.

Disclaimer: This is not investment advice. Our content is for informational and educational purposes only. Please read our full disclaimer before making any investment decisions.