With Profitability At The Forefront, Is This Stock a Top Pick: Insulet Corporation (NASDAQ:PODD)

Any investors would pay particular attention to the profitability of a company before considering taking a position.  Here we’ll take a quick look at shares of Insulet Corporation (NASDAQ:PODD) and the company’s ability to generate profit.  The firm currently has a Return on Equity -123.10% which is derived from comparing 12-months net income to shareholder equity.  So even though the company is generating profits, where can the stock go from here?  Sell-side analysts covering the shares are projecting a one year price target of $43.37 on the stock.  When comparing this to a recent price of $43.55, the potential upside should be noted.  Taking analyst recommendations into consideration results in a Buy/Sell consensus recommendation of 2.10.  This is according to all of the analysts polled by First Call.  

What makes a stock profitable?  Let’s look at a few factors.

Rising EPS (Earnings Per Share)

Businesses must be able to have competitive advantages and must produce value to consumers in the form of desirable goods and services.  When a business has a strong brand, they can afford to raise prices and also have a differentiated product that is more desirable compared to their competition.  A business that is able to grow earnings per share can afford to pay a rising dividend. Insulet Corporation (NASDAQ:PODD)’s trailing 12-months EPS is -0.80.

Historical Growth

Insulet Corporation (NASDAQ:PODD)’s performance this year to date is 15.58%.  The stock has performed 14.91% over the last seven days, 16.23% over the last thirty, and 12.68% over the last three months.  Over the last six months, Insulet Corporation’s stock has been 31.14% and 26.67% for the year.

RSI and Recommendations

Insulet Corporation’s RSI is 74.96.  Based on the stock’s volatility for the week, which is a statistical measure of the dispersion of returns for a given stock and represents average daily high/low percentage range of 6.05% and month of 3.47%.  

There are a number of sell-side analysts who have recently weighed in on the firm.  As stated earlier, the consensus target price is $43.37 with a mean recommendation of 2.10 (1-5 scale). 

Nothing contained in this publication is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.

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