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

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.

Evaluating Growth: NASDAQ:PODD

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:PODD has achieved a 9 out of 10:

• PODD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 182.50%, 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 122.39% on average per year.
• Looking at the last year, PODD shows a very strong growth in Revenue. The Revenue has grown by 27.82%.
• PODD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.66% yearly.
• The Earnings Per Share is expected to grow by 20.32% on average over the next years. This is a very strong growth
• The Revenue is expected to grow by 15.95% on average over the next years. This is quite good.

What does the Health looks like for NASDAQ:PODD

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:PODD scores a 5 out of 10:

• An Altman-Z score of 6.71 indicates that PODD is not in any danger for bankruptcy at the moment.
• PODD has a Altman-Z score of 6.71. This is amongst the best in the industry. PODD outperforms 83.33% of its industry peers.
• Looking at the Debt to FCF ratio, with a value of 7.66, PODD is in the better half of the industry, outperforming 74.73% of the companies in the same industry.
• A Current Ratio of 3.60 indicates that PODD has no problem at all paying its short term obligations.
• PODD has a Quick Ratio of 2.71. This indicates that PODD is financially healthy and has no problem in meeting its short term obligations.

Exploring NASDAQ:PODD's Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:PODD has earned a 8 out of 10:

• PODD has a Return On Assets of 13.72%. This is amongst the best in the industry. PODD outperforms 95.70% of its industry peers.
• With an excellent Return On Equity value of 39.59%, PODD belongs to the best of the industry, outperforming 98.92% of the companies in the same industry.
• PODD's Return On Invested Capital of 8.14% is amongst the best of the industry. PODD outperforms 87.63% of its industry peers.
• The last Return On Invested Capital (8.14%) for PODD is above the 3 year average (4.58%), which is a sign of increasing profitability.
• With an excellent Profit Margin value of 21.11%, PODD belongs to the best of the industry, outperforming 94.62% of the companies in the same industry.
• PODD's Profit Margin has improved in the last couple of years.
• PODD's Operating Margin of 14.56% is amongst the best of the industry. PODD outperforms 83.87% of its industry peers.
• PODD's Operating Margin has improved in the last couple of years.
• PODD's Gross Margin of 69.00% is fine compared to the rest of the industry. PODD outperforms 79.57% of its industry peers.

How do we evaluate the setup for NASDAQ:PODD?

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NASDAQ:PODD currently holds a 9 as its setup rating, suggesting a particular level of consolidation in the stock.

PODD has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 236.61. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 233.06, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

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.

For an up to date full technical analysis you can check the technical report of PODD

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.