Should You Buy Insulet Stock After 24% Drop?
Insulet (PODD) stock has fallen by 23.7% in less than a month, from $209.84 on 31st Mar, 2026 to $160.02 now. Should you buy this dip?
Dip buying is a viable strategy for quality stocks that have a history of recovering from dips. As it turns out, PODD stock passes basic quality checks. Historically, the median return for the 12-month period following sharp dips was 40% , with median peak return reaching 59%. We define sharp dip as stock going down 20% or more, in less than 30 day period.
Below, we get into details of historical dips and subsequent returns.
Historical Median Returns Post Dips
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| Period | Past Median Return |
|---|---|
| 1M | 7.5% |
| 3M | 14.8% |
| 6M | 29.2% |
| 12M | 39.6% |
Historical Dip-Wise Details
PODD had 16 events since 1/1/2010 where the dip threshold of -20% within 30 days was triggered
- 59% median peak return within 1 year of dip event
- 285 days is the median time to peak return after a dip event
- -7.4% median max drawdown within 1 year of dip event
| 30 Day Dip | PODD Subsequent Performance | |||||||
|---|---|---|---|---|---|---|---|---|
| Date | PODD | SPY | 1Y | Peak Return |
Max Drop |
# Days to Peak |
||
| Median | 40% | 59% | -7% | 285 | ||||
| 4102026 | -22% | -1% | -19% | 3% | -19% | 7 | ||
| 3052024 | -20% | 5% | 54% | 76% | -2% | 352 | ||
| 8092023 | -22% | 2% | -21% | 2% | -44% | 1 | ||
| 10202022 | -21% | -8% | -31% | 56% | -40% | 204 | ||
| 5092022 | -24% | -12% | 69% | 72% | -3% | 361 | ||
| 1262022 | -25% | -7% | 43% | 57% | -6% | 282 | ||
| 3162020 | -29% | -25% | 94% | 113% | -5% | 310 | ||
| 10242018 | -21% | -8% | 73% | 99% | -14% | 314 | ||
| 11022016 | -29% | -3% | 81% | 95% | -4% | 350 | ||
| 5182016 | -20% | -1% | 53% | 75% | 0% | 288 | ||
| 2052016 | -23% | -8% | 50% | 60% | -12% | 230 | ||
| 5012015 | -22% | 1% | 22% | 46% | -8% | 242 | ||
| 1152015 | -29% | -3% | 6% | 23% | -20% | 348 | ||
| 4282014 | -21% | 2% | -18% | 24% | -23% | 225 | ||
| 8082011 | -26% | -11% | 26% | 44% | -6% | 329 | ||
| 11222010 | -20% | 3% | 36% | 80% | -0% | 227 | ||
1Y Refers to 1 year or time since recent dip, whichever is smaller
Insulet Passes Basic Financial Quality Checks
Revenue growth, profitability, cash flow, and balance sheet strength need to be evaluated to reduce the risk of a dip being the sign of a deteriorating business situation.
| Quality Metrics | Value | Quality Check |
|---|---|---|
| Revenue Growth (LTM) | 30.7% | Pass |
| Revenue Growth (3-Yr Avg) | 27.6% | Pass |
| Operating Cash Flow Margin (LTM) | 21.0% | Pass |
| Leverage (see below) | – | Pass |
| => Interest Coverage Ratio | 6.7 | |
| => Cash To Interest Expense Ratio | 12.1 |
Not sure if you can take a call on PODD stock? Consider portfolio approach
The Best Investors Think In Portfolios
Stocks can jump or crash, but long-term success comes from staying invested. The right portfolio helps you ride gains and cushion single stock drops.
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? HQ Portfolio has posted more than 105% in cumulative return since inception, with less risk versus the benchmark index, as evident in HQ Portfolio performance metrics.