Goldman Sachs’ Top Growth Investors: 34 Stocks With The Highest Investment For Growth

Page 24 of 33

10. Insulet Corporation (NASDAQ:PODD)

Growth Investment Ratio: 168%

Number of Hedge Fund Holders: 44

Insulet Corporation (NASDAQ:PODD) is a specialty medical devices company. The firm is one of the few of its kind in the industry that make and sell pods used by diabetics. As opposed to traditional insulin delivery systems which rely on needles, Insulet Corporation (NASDAQ:PODD)’s pods allow diabetics to continuously measure their sugar levels and autonomously administer insulin as needed. This creates catalysts and risks for the firm. On the former front, it means the firm enjoys a large competitive moat since its products are uncommonly manufactured. Yet, this creates the risk of Insulet Corporation (NASDAQ:PODD) being left behind if a rival introduces a superior product since the firm does not have any other products through which it generates sales. For its stock, the reliance on pods and diabetics means that Insulet Corporation (NASDAQ:PODD)’s shares are sensitive to product updates and regulatory approval. This was also the case in August when the stock soared by 27% after the FDA approved Insulet Corporation (NASDAQ:PODD)’s latest Omnipod, the Omnipod 5.

ClearBridge Investments mentioned Insulet Corporation (NASDAQ:PODD) in its Q3 2024 investor letter. Here is what the fund said:

“As long-term investors, we are well-positioned to take advantage of short-term volatility in our portfolio holdings. Shares of insulin pump maker Insulet Corporation (NASDAQ:PODD), for example, went through a similar downdraft last year on fears that GLP-1 therapeutics would severely impact usage of its products. Our in-depth analysis, stress testing for a slowdown in growth of the diabetes patient population, convinced us that the market was giving little to no credit for the company’s Type 2 diabetes opportunity, giving us confidence to add to the position. The stock is impressively up more than 75% from 2023 lows as other investors have come to appreciate Insulet’s valuation had gotten overly penalized.”

Page 24 of 33