Should You Buy DexCom Stock Before Feb. 13?

Core Viewpoint - DexCom faces challenges due to the rising popularity of GLP-1 drugs, which may reduce the demand for continuous glucose monitoring (CGM) devices as people become healthier and less likely to develop diabetes [1][2] Group 1: Business Performance and Growth - DexCom's stock has struggled over the past year, down nearly 30%, but has recently rallied more than 20% in three months [2][4] - The company has experienced a significant drop in its growth rate, leading to investor concerns about the correlation between the increased use of GLP-1 drugs and the demand for CGMs [2][3] - DexCom slashed its growth forecast last year, attributing it to a restructuring of its sales team, but investors remain skeptical about this explanation [3] Group 2: Valuation and Investment Considerations - Despite recent momentum, DexCom's shares have not recovered from last year's sell-off following poor results and reduced guidance, leading to a potentially favorable valuation [4] - The stock is trading at over 50 times its trailing earnings, which is considered expensive, especially if the demand for CGMs decreases due to GLP-1 drugs [5] - Long-term investment in DexCom may still be appealing, as ongoing affordability issues with GLP-1 drugs could lead to a resurgence in demand for CGMs [6][7]