A Stock That Continues To Rise Along With Diabetes

| About: Insulet Corporation (PODD)

If you've read the news lately, you may have seen that Type I Diabetes is making headlines, again. And you were probably befuddled if you saw what I saw.

This news may come as a shock; living amidst too much cleanliness leads to a weaker immune system, which also leads to a greater chance of inheriting Type I Diabetes.

WHAT? Being clean is now wrong?

Type I Diabetes already affects more than 37,000,000 people worldwide. What this means for all these millions of sufferers is a significantly increased chance of stroke and heart failure as well as a shortened lifespan of up to ten years.

That is a lot of people with a lot of need for a solution, and it is likely that at least one of these people is someone you know…

In comes Insulet Co. (NASDAQ:PODD), a $2.4 billion small-cap medical company headquartered in Bedford, Massachusetts. And who else better to do the job than a company formed in 2000 by a loving father searching for a cure for his suffering, diabetic son?

Data from Best Stocks Now App

Today Insulet is a medical device company that develops and commercializes wireless handheld insulin infusions systems for people with Type I Diabetes. It has had some pretty good growth over the years and that's one of the reasons it's caught my eye, amongst others. Let's dissect this stock.


I'll start with the performance of this company which has been very good.

Data from Best Stocks Now App

Over the last five years PODD has delivered average annual returns of over 40% to investors, beating the annual returns of the market by over 23%.

Over the last three years PODD has returned more than 36% per year while the market has delivered less than third that at only 11.5%.

And over the last 12 months PODD is up 83%, quadrupling the returns of the market.

PODD more than passes my performance test with a momentum grade of 'B+'


Unfortunately, it's hard to do a valuation on this company because so far it is not profitable, but quarterly sales have been growing by about 20% year over year. At the current moment, I've found PODD in a similar situation to ISIS, another top-performing stock that makes my Best Stocks Now list. No earnings yet, but sales are growing as is the pipeline.

Data from Best Stocks Now App

But PODD's exceptional performance tells me that investors are confidently expecting profits SOON. So while I cannot do an appropriate valuation on PODD at the current time, I can compare it to other similar winners such as Incyte (NASDAQ:INCY) which is also a Best Stock Now. I recently wrote about Incyte. You may want to check out my article. The stock has done very well for my clients-so far.

Stock Chart

The last thing I have to check on this stock is its chart which indicates to me when to buy and when to sell. I've been watching this stock for a while…

I bought the stock when it recently broke out through resistance. Let's hope that this is the beginning of a new major uptrend in the stock.

As always, I keep a close eye on stocks each day after I buy them. There is no marriage license here.

Out of the 3,813 stocks that I follow, PODD comes in at #66 and it's also a stock that I own at Gunderson Capital Mgt. in my aggressive growth accounts.

Data from Best Stocks Now App

What else do I own in my portfolios? Find out here. I publish them every week in my newsletter.

Data from Best Stocks Now App

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Disclosure: I am long PODD. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.