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Recent 6.0% pullback isn't enough to hurt long-term Insulet (NASDAQ:PODD) shareholders, they're still up 474% over 5 years

·2-min read

It hasn't been the best quarter for Insulet Corporation (NASDAQ:PODD) shareholders, since the share price has fallen 15% in that time. But that doesn't change the fact that the returns over the last half decade have been spectacular. In that time, the share price has soared some 474% higher! So we don't think the recent decline in the share price means its story is a sad one. Only time will tell if there is still too much optimism currently reflected in the share price.

Although Insulet has shed US$1.1b from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.

Check out our latest analysis for Insulet

Given that Insulet didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last 5 years Insulet saw its revenue grow at 22% per year. That's well above most pre-profit companies. Arguably, this is well and truly reflected in the strong share price gain of 42%(per year) over the same period. It's never too late to start following a top notch stock like Insulet, since some long term winners go on winning for decades. On the face of it, this looks lke a good opportunity, although we note sentiment seems very positive already.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

earnings-and-revenue-growth
earnings-and-revenue-growth

Insulet is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. You can see what analysts are predicting for Insulet in this interactive graph of future profit estimates.

A Different Perspective

Insulet shareholders are down 5.9% for the year, but the market itself is up 15%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 42%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. 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. Case in point: We've spotted 2 warning signs for Insulet you should be aware of.

We will like Insulet better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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

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