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

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether INSULET CORP (NASDAQ:PODD) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but INSULET CORP has surfaced on our radar for growth with base formation, warranting further examination.

Deciphering NASDAQ: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. NASDAQ: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 906.25%, which is quite impressive.
• The Earnings Per Share has been growing by 122.39% on average over the past years. This is a very strong growth
• Looking at the last year, PODD shows a very strong growth in Revenue. The Revenue has grown by 30.17%.
• The Revenue has been growing by 24.66% on average over the past years. This is a very strong growth!
• PODD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 20.32% yearly.
• Based on estimates for the next years, PODD will show a quite strong growth in Revenue. The Revenue will grow by 15.95% on average per year.

Unpacking NASDAQ:PODD's Health Rating

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:PODD has earned a 5 out of 10:

• An Altman-Z score of 5.86 indicates that PODD is not in any danger for bankruptcy at the moment.
• PODD has a Altman-Z score of 5.86. This is amongst the best in the industry. PODD outperforms 81.68% of its industry peers.
• PODD's Debt to FCF ratio of 10.25 is fine compared to the rest of the industry. PODD outperforms 72.77% of its industry peers.
• PODD has a Current Ratio of 3.74. This indicates that PODD is financially healthy and has no problem in meeting its short term obligations.
• PODD has a Quick Ratio of 2.75. This indicates that PODD is financially healthy and has no problem in meeting its short term obligations.

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. NASDAQ:PODD was assigned a score of 8 for profitability:

• PODD has a Return On Assets of 8.92%. This is amongst the best in the industry. PODD outperforms 90.58% of its industry peers.
• PODD's Return On Equity of 29.59% is amongst the best of the industry. PODD outperforms 97.38% of its industry peers.
• PODD has a Return On Invested Capital of 8.13%. This is amongst the best in the industry. PODD outperforms 86.91% of its industry peers.
• The 3 year average ROIC (4.58%) for PODD is below the current ROIC(8.13%), indicating increased profibility in the last year.
• Looking at the Profit Margin, with a value of 13.14%, PODD belongs to the top of the industry, outperforming 90.05% of the companies in the same industry.
• In the last couple of years the Profit Margin of PODD has grown nicely.
• The Operating Margin of PODD (13.99%) is better than 83.25% of its industry peers.
• In the last couple of years the Operating Margin of PODD has grown nicely.
• PODD has a better Gross Margin (68.86%) than 78.01% of its industry peers.

Looking at the Setup

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:PODD scores a 8 out of 10:

PODD has only a medium technical rating, but it does show a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 191.92. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 190.38, 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 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.