1-Star Stocks Poised to Plunge: Insulet?

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, insulin-infusion device specialist Insulet (NAS: PODD) has received the dreaded one-star ranking.

With that in mind, let's take a closer look at Insulet's business and see what CAPS investors are saying about the stock right now.

Insuletfacts

Headquarters (founded)Bedford, Mass. (2000)
Market Cap$912.6 million
IndustryHealthcare equipment
Trailing-12-Month Revenue$152.3 million
ManagementCEO Duane DeSisto (since 2003)
CFO Brian Roberts (since 2009)
Return on Equity (average, past 3 years)(113.1%)
Cash/Debt$94.0 million / $108.5 million
CompetitorsAnimas
Medtronic
Smiths Medical

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 37% of the 107 members who have rated Insulet believe the stock will underperform the S&P 500 going forward.

Just last week, one of those Fools, NHWeston, succinctly summed up the bear case for our community:

The future in this space belongs to the company that can make and market "The Artificial Pancreas", the device that simultaneously measures changes in glucose and reponds with an immediate and correct insulin dosage. [Insulet's] problem is that it's up against heavy-weights and [outgunned] by their marketeers. I cannot see it getting bought out. It will, I fear, slip and stagnate.

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At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Medtronic. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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