New Zealand markets close in 2 hours 33 minutes
  • NZX 50

    11,249.77
    +71.74 (+0.64%)
     
  • NZD/USD

    0.5980
    +0.0016 (+0.27%)
     
  • NZD/EUR

    0.5656
    +0.0016 (+0.28%)
     
  • ALL ORDS

    7,244.20
    +21.70 (+0.30%)
     
  • ASX 200

    7,043.60
    +18.80 (+0.27%)
     
  • OIL

    91.63
    -0.08 (-0.09%)
     
  • GOLD

    1,883.00
    +4.40 (+0.23%)
     
  • NASDAQ

    14,702.77
    +122.61 (+0.84%)
     
  • FTSE

    7,601.85
    +8.63 (+0.11%)
     
  • Dow Jones

    33,666.34
    +116.07 (+0.35%)
     
  • DAX

    15,323.50
    +106.05 (+0.70%)
     
  • Hang Seng

    17,373.03
    0.00 (0.00%)
     
  • NIKKEI 225

    31,837.85
    -34.67 (-0.11%)
     
  • NZD/JPY

    89.2900
    +0.3040 (+0.34%)
     

Insulet (NASDAQ:PODD) shareholder returns have been splendid, earning 271% in 5 years

When you buy a stock there is always a possibility that it could drop 100%. But when you pick a company that is really flourishing, you can make more than 100%. One great example is Insulet Corporation (NASDAQ:PODD) which saw its share price drive 271% higher over five years. Also pleasing for shareholders was the 13% gain in the last three months. The company reported its financial results recently; you can catch up on the latest numbers by reading our company report.

After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals.

See our latest analysis for Insulet

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

During the last half decade, Insulet became profitable. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

earnings-per-share-growth
earnings-per-share-growth

Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.

A Different Perspective

It's good to see that Insulet has rewarded shareholders with a total shareholder return of 68% in the last twelve months. Since the one-year TSR is better than the five-year TSR (the latter coming in at 30% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Insulet better, we need to consider many other factors. Take risks, for example - Insulet has 4 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here