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Why Diabetes Stock Insulet Jumped 13.3% in January -- After Soaring 116% in 2019

By Beth McKenna - Feb 7, 2020 at 9:30AM

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Shares of the leader in tubeless insulin pump technology have investors pumped up.

What happened

Shares of Insulet (PODD 2.04%) surged 13.3% last month, according to data from S&P Global Market Intelligence. The S&P 500 was flat in January. The Boston-area healthcare company is the leader in tubeless insulin pump technology with its Omnipod pump.

Insulet stock has continued to move higher in February, bringing its 2020 gain to 15.9% through Feb. 6, versus the broader market's 3.7% return. The stock was a huge winner last year, handing investors a gain of 116%, compared with the S&P 500's 31.5% return. (In October, I picked Insulet as one of "three stocks poised for huge growth over the next decade.")

A two-pane image with the top pane showing an Omnipod attached to a woman's lower stomach and the bottom pane showing the handheld control for the device.

Image source: Getty Images.

So what

Insulet didn't make any significant announcements in very late December or in January, nor was it the specific subject of any notable news during this period. So it seems likely that its stock's robust performance last month was simply a continuation of the powerful momentum it's enjoyed for some time, thanks to investor confidence in the company's growth potential.

That confidence is being fueled by Insulet's strong quarterly results. In the third quarter, its revenue soared 27% year over year to $192.1 million, sailing by the $179.5 million Wall Street expectation. Adjusted earnings per share (EPS) tripled to $0.09, crushing the analyst consensus estimate of $0.03.

Now what

Investors shouldn't have long to wait for material news. Insulet is slated to report its fourth-quarter and full-year 2019 results after the market closes on Tuesday, Feb. 25. For the quarter, the company guided for revenue growth of about 17% to 22% year over year. And for the year, it expects revenue to increase about 28% to 29%. (Insulet doesn't provide earnings guidance.)

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