What Is Insulet Corporation's (NASDAQ:PODD) Share Price Doing?

Let's talk about the popular Insulet Corporation (NASDAQ:PODD). The company's shares saw a decent share price growth of 19% on the NASDAQGS over the last few months. The company's trading levels have approached the yearly peak, following the recent bounce in the share price. As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s take a look at Insulet’s outlook and value based on the most recent financial data to see if the opportunity still exists.

See our latest analysis for Insulet

Is Insulet Still Cheap?

The stock seems fairly valued at the moment according to our valuation model. It’s trading around 18.77% above our intrinsic value, which means if you buy Insulet today, you’d be paying a relatively fair price for it. And if you believe the company’s true value is $228.88, then there isn’t really any room for the share price grow beyond what it’s currently trading. So, is there another chance to buy low in the future? Given that Insulet’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us an opportunity to buy later on. This is based on its high beta, which is a good indicator for share price volatility.

What does the future of Insulet look like?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. However, with a negative profit growth of -0.8% expected over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for Insulet. This certainty tips the risk-return scale towards higher risk.

What This Means For You

Are you a shareholder? PODD seems fairly priced right now, but given the uncertainty from negative returns in the future, this could be the right time to de-risk your portfolio. Is your current exposure to the stock beneficial for your total portfolio? And is the opportunity cost of holding a negative-outlook stock too high? Before you make a decision on the stock, take a look at whether its fundamentals have changed.

Are you a potential investor? If you’ve been keeping an eye on PODD for a while, now may not be the most advantageous time to buy, given it is trading around its fair value. The price seems to be trading at fair value, which means there’s less benefit from mispricing. In addition to this, the negative growth outlook increases the risk of holding the stock. However, there are also other important factors we haven’t considered today, which can help gel your views on PODD should the price fluctuate below its true value.

If you'd like to know more about Insulet as a business, it's important to be aware of any risks it's facing. You'd be interested to know, that we found 2 warning signs for Insulet and you'll want to know about them.

If you are no longer interested in Insulet, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.