2 Healthcare Stocks to Buy Hand Over Fist in January

Group 1: DexCom - DexCom is a leader in the continuous glucose monitoring (CGM) market, which helps diabetes patients track their blood glucose levels [2] - The company faced challenges in 2024, including slower-than-expected revenue growth due to patient rebate eligibility issues, leading to a significant drop in share price [2] - Despite recent difficulties, DexCom's long-term prospects remain strong due to the increasing adoption of CGM devices, which offer advantages over traditional blood glucose meters [3][4] - The total addressable market for DexCom in the U.S. is estimated at 25 million people, indicating substantial growth potential [4] - DexCom has expanded its product offerings with Stelo, an over-the-counter CGM for prediabetes, and its devices are compatible with third-party insulin pens and pumps, enhancing its market position [5] - The combination of growth opportunities and network effects positions DexCom for a rebound and strong returns for investors [5][6] Group 2: Exact Sciences - Exact Sciences specializes in innovative cancer diagnostic tests, with Cologuard being its most popular product for colorectal cancer screening [7] - Cologuard has been used for millions of screenings, contributing to a 13% year-over-year revenue increase to $709 million, although the company remains unprofitable [8] - The FDA approved a new version of Cologuard that performs better and is 5% cheaper to manufacture, which is expected to attract more physicians and reduce costs [9] - There are 60 million eligible unscreened patients in the U.S. aged 45 to 85, presenting a significant market opportunity for Exact Sciences [10] - The company is also developing additional diagnostic devices, including a potential multicancer test, which could lead to stronger revenue growth and profitability in the next five years [10]