Insulet Corp (NASDAQ:PODD) Combines Technical Strength and Fundamental Momentum for High-Growth Potential

In the world of growth investing, combining technical strength with fundamental momentum is a proven way to find high-potential stocks. The method used here brings together Mark Minervini’s Trend Template, a strict group of technical rules meant to find stocks in strong uptrends, with a look at high-growth fundamentals, like speeding up earnings, growing profit margins, and good revenue performance. This two-part study helps find companies that are not only technically good but also show the financial strength needed for continued high performance.

Insulet Corp (NASDAQ:PODD) appears as a strong candidate under this system. The medical device maker, known for its new Omnipod insulin management system, shows both technical and fundamental traits that fit the needs of momentum and growth-focused plans.

Technical Strength: Following the Trend Template

A main part of Minervini’s plan is making sure a stock is in a clear and strong uptrend. Insulet meets all important technical rules:

• The current price of $352.82 trades well above its 150-day moving average ($290.19) and 200-day moving average ($284.79), confirming a positive long-term trend.
• Both the 150-day and 200-day moving averages are moving up, showing continued momentum.
• The 50-day moving average ($308.74) is above the 150-day and 200-day averages, supporting positive alignment across timeframes.
• With a 52-week low of $225.37, the current price shows a gain of over 56%, well above the 30% mark, while trading within 0.2% of its 52-week high ($353.50), demonstrating strong momentum close to new highs.
• The stock’s relative strength ranking of 87.11 shows it is doing better than 87% of the market, a key sign of leadership.

These points together suggest that PODD is in Stage 2 accumulation, a phase Minervini links with the highest growth possibility, supported by institutional backing and steady buyer interest.

Fundamental Momentum: Growth and Earnings Speed-Up

Beyond technicals, Minervini stresses the need for fundamental speed-up, especially in earnings, revenue, and profit margins. Insulet shows clear strength here too:

• Earnings per share (EPS) for the trailing twelve months are at $4.23, with year-over-year growth of 24.8%. Quarterly EPS growth is even more notable, with the newest quarter jumping 112.7% compared to the same time last year.
• Revenue growth stays strong, with a TTM increase of 26.0% and latest quarterly growth of 32.9%.
• The company has beaten EPS estimates in each of the last four quarters, with an average surprise of 18.5%, showing steady outperformance compared to expectations.
• Profit margins, though changing each quarter, have shown clear improvement on a yearly basis, going from 1.5% three years ago to over 20% in the last full year.
• Free cash flow per share has grown very quickly, up nearly 1,594% over the past year, showing good operational efficiency and financial health.

These numbers not only meet but go past the usual limits for high-growth momentum investing, pointing out Insulet’s ability to benefit from rising demand for automated insulin delivery systems.

Sector Setting and Market Place

Insulet works in the Health Care Equipment & Supplies industry, a sector often stable during economic changes and supported by long-term population trends. With a relative strength ranking that puts it in the top 13% of stocks in its sector, PODD is showing clear leadership, a quality Minervini often connects with more upside possibility.

The company’s continuing new development, including the release of the Omnipod 5 Automated Insulin Delivery System, acts as a fundamental catalyst that may push continued growth. This kind of product progress matches Minervini’s focus on investing in companies with a clear growth path and competitive advantages.

Technical Summary and Risk Points

According to ChartMill’s technical report, Insulet has a perfect rating of 10, showing excellent trend health, steady outperformance, and strong momentum. The report does say, however, that the current setup rating is only 3, meaning that after a big rally, the stock may be starting a time of consolidation. While the long-term trend stays positive, short-term changes could offer entry chances on drops toward support levels, especially in the $342,353 range.

For a detailed technical study, readers can see the full technical analysis report for PODD.

Find Similar Chances

Insulet is just one example of a stock that fits both momentum and growth rules. Investors searching for other high-potential names that meet similar technical and fundamental standards can find more results using the High Growth Momentum + Trend Template screen.

Conclusion

Insulet Corp shows the strong mix of technical trend strength and fundamental growth momentum. Its following of Minervini’s Trend Template, along with speeding up financial performance and sector leadership, makes it a notable candidate for investors looking for exposure to high-growth equities. Still, as with all investments, careful risk management, including position sizing and stop-loss discipline, is important to handle possible changes and protect capital.

Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. All investment decisions carry risk, and individuals should conduct their own research or consult a qualified financial advisor before making investment decisions.