For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.

Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.

What if you'd invested in Insulet (PODD) ten years ago? It may not have been easy to hold on to PODD for all that time, but if you did, how much would your investment be worth today?

Insulet's Business In-Depth

With that in mind, let's take a look at Insulet's main business drivers.

Insulet Corporation is a leading developer, manufacturer and marketer of the Omnipod Insulin Management System. The system is equipped with a self-adhesive, small and lightweight disposable tubeless Omnipod device along with the wireless and handheld Personal Diabetes Manager (PDM). It is worn on the body for approximately three days at a time and allows virtually pain-free automated cannula insertion and blood glucose meter integration.

The Omnipod System is an innovative, discreet and easy-to-use continuous insulin delivery system for people with insulin-dependent diabetes, which the company has been selling since 2005. The Omnipod System consists of the following: the Omnipod Insulin Management System (“Omnipod”) and the Omnipod DASH Insulin Management System (“Omnipod DASH” or “DASH”), which is Insulet’s next generation digital mobile Omnipod platform.

Insulet reports revenues through three segments:

The company earns a huge share of revenues from the Omnipod System in the United States, Canada, Europe and Israel. It operates in these markets either directly or through intermediaries. In 2023, the company’s 76% of total revenues came from the U.S. Omnipod sales (up 41.4% from 2022), while 24% (up 13% from 2022) was generated from the International Omnipod sales.

Drug Delivery Business (0.9% of total revenues in 2023, down 37.4% from 2022): Insulet has tied up with pharmaceutical and biotechnological companies which use a customized form of the Omnipod System to deliver a drug at a certain administered volume and over a specified period of time.

In addition to the diabetes market space, Insulet has partnered with pharmaceutical and biotechnology companies to tailor the Omnipod System technology platform for the delivery of subcutaneous drugs across other therapeutic areas. Most of the drug delivery revenue consists of sales of Pods to Amgen for use in the Neulasta Onpro kit, an innovative delivery system for Amgen’s white blood cell booster to help reduce the risk of infection after intense chemotherapy.

Bottom Line

Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Insulet a decade ago, you're probably feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in November 2014 would be worth $5,861.48, or a gain of 486.15%, as of November 26, 2024, and this return excludes dividends but includes price increases.

In comparison, the S&P 500 gained 189.66% and the price of gold went up 110.14% over the same time frame.

Analysts are forecasting more upside for PODD too.

Insulet is solidifying its market leadership through a series of product innovations. The U.S. full market release of Omnipod 5 with Dexcom G7 and the latest type 2 label expansion for Omnipod 5 are expected to attract more new customers. Internationally, the company is capitalizing on the robust opportunities for Omnipod 5 to drive share gains across all the markets it enters. Meanwhile, Omnipod 5 is set to become the primary offering for the largely underpenetrated Type 2 diabetes market, which provides a significant growth opportunity for Insulet. The strategic move replaces the commercialization of Omnipod GO. Additionally, sound financial stability bodes well. However, macroeconomic uncertainties raise concerns about Insulet’s operations. Heavy reliance on the Omnipod product platform and rival pressures add to the worry.

The stock is up 14.23% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 5 higher, for fiscal 2024. The consensus estimate has moved up as well.

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