Reasons to Retain DexCom (DXCM) Stock in Your Portfolio Now

Core Viewpoint - DexCom, Inc. (DXCM) is positioned for growth due to its strong product portfolio and favorable coverage decisions, despite facing competition risks [1] Group 1: Financial Performance - DexCom's shares have increased by 6.3% year to date, while the industry has grown by 10% and the S&P 500 Index by 11.5% [1] - The company has a market capitalization of $51.58 billion and projects a 33% growth over the next five years [1] - In the first quarter of 2024, DexCom's earnings per share improved by 88.2% year over year to 32 cents, with revenues up 24% at $921 million [5] - The company raised its revenue guidance for 2024 to a range of $4.2-$4.35 billion, indicating organic growth of 17-21% year over year [5] - The Zacks Consensus Estimate for earnings per share for 2024 has increased from $1.75 to $1.78, with second-quarter revenue estimates at $1.04 billion, reflecting a 19.1% improvement year over year [7] Group 2: Product Development and Market Opportunities - DexCom continues to expand its product portfolio with new products like G7 and One+, which have driven growth [2] - The G7 sensor has shown strong demand since its launch, and the company is focusing on connecting CGM sensors with automated insulin delivery systems [2] - The glucose monitoring market offers significant commercial opportunities, including non-intensive diabetes management and obesity [3] - The FDA approved a new glucose sensor, Stelo, for type II diabetes, expected to launch in the U.S. in summer 2024, which is anticipated to be a key growth driver [3] Group 3: Coverage and Competitive Position - DexCom's G6 and G7 sensors have received extensive coverage in the U.S., bolstered by the Centers for Medicare & Medicaid Services' decision to expand coverage for insulin users and certain non-insulin users [4] - The G7 CGM System is covered by all major pharmacy benefit managers in the U.S., and DexCom One+ is available in Europe under a reimbursement policy [5] - The company is recognized as the most covered CGM in the U.S., enhancing its competitive position [4]