Core Viewpoint - DexCom's shares have underperformed the broader market in 2025, down 11% year to date, primarily due to legal and regulatory challenges impacting its performance [1][8] Financial Performance - Despite the stock's decline, DexCom's financial results have been strong, with expectations for continued growth in the upcoming quarterly update on October 30 [2][6] - The company's guidance for fiscal 2025 indicates a year-over-year revenue growth of approximately 14% to 15%, which is critical for maintaining investor confidence [6] Product and Market Position - DexCom is a leading player in the continuous glucose monitoring (CGM) market, with its latest device, the G7, launched in the U.S. in 2023 [3][7] - Some patients have reported issues with inaccurate readings from the G7 device, leading to class action lawsuits, although the majority of customers are still using older G6 devices [4][6] Regulatory Challenges - The company received a warning letter from the U.S. Food and Drug Administration regarding manufacturing issues, which negatively impacted its stock price [5][8] - Monitoring how DexCom addresses these regulatory challenges will be crucial in the upcoming quarterly update [6] Competitive Landscape - DexCom faces competition from Abbott Laboratories, which has also experienced quality control issues with its FreeStyle Libre device, yet remains a significant growth driver for Abbott [7]
Should You Buy DexCom Stock Before Oct. 31?