DexCom, Inc. (DXCM), headquartered in San Diego, California, is a leading medical-device company that designs, develops and commercializes continuous glucose monitoring (CGM) systems for people with diabetes and healthcare providers. The company’s market cap is around $23.2 billion. Shares of the medical device company have massively underperformed the broader market. Over the past 52 weeks, DXCM stock has declined 19.8%, while the broader S&P 500 Index ($SPX) has rallied 14.5%. Also, the stock is down 23 ...

Core Insights - DexCom, Inc. (DXCM) is positioned for growth in the continuous glucose monitoring (CGM) market, with a strong third-quarter performance and favorable coverage decisions expected to drive further growth, despite facing stiff competition [1][2] Company Overview - DexCom has a market capitalization of $21.45 billion and projects a 22.5% growth rate over the next five years, indicating strong future performance [2] - The company has surpassed earnings estimates in two of the last four quarters, with an average surprise of 0.17% [2] CGM Market Potential - The diabetes market presents significant potential, with over 130 million people in the U.S. and more than 400 million globally affected by diabetes, driving demand for CGM devices [3] - The global CGM device market is expected to grow at a CAGR of nearly 10%, reaching $14 billion by 2032 from over $6 billion currently [4] Product Ecosystem and Innovation - DexCom generates nearly 90% of its revenue from disposable CGM sensors, with strong demand driven by product performance and user experience [6] - The G7 and One+ products are gaining traction due to broader insurance coverage and growing physician support, particularly among Type 2 diabetes patients [6] - DexCom's software ecosystem, including features like AI-powered insights, is enhancing patient engagement and supporting reimbursement efforts [7] Recent Developments - The launch of Stelo in 2024 has already generated over $100 million in its first year, indicating strong market acceptance [8] - DexCom is expanding global reimbursement for its CGM sensors, which is expected to drive broader adoption, especially among Type 2 diabetes patients [9] International Expansion - DexCom has made significant progress in international markets, securing reimbursements in countries like France, Canada, and Japan, which is expected to improve affordability and patient access [11] Financial Performance - DexCom reported strong third-quarter results with double-digit top-line growth and raised full-year guidance, reflecting successful execution in expanding access to CGM [12] - The Zacks Consensus Estimate for 2025 earnings per share has increased to $2.07, with fourth-quarter revenue expected to improve by 11.7% year over year [15]

Core Insights - Tandem Diabetes Care reported Q3 CY2025 results with revenue of $249.3 million, exceeding analyst expectations by 5.6% and showing a year-on-year growth of 2.6% [1][6] - The company's GAAP loss per share was $0.31, which was 3.6% better than the consensus estimate of $0.32 [1][6] Operational Performance - The third quarter was characterized by improved operational efficiency and commercial execution, leading to a positive market reaction [3] - Management attributed the performance to the modernization of U.S. commercial operations, increased pricing contributions, and early traction from new product offerings [3][5] - Changes in sales processes and organizational restructuring have resulted in better sales productivity and a strong customer mix adopting both t:slim and Mobi pump platforms [3] Future Outlook - The company plans to expand pharmacy access, launch new products, and enhance direct international operations [4] - New product introductions, such as Mobi Tubeless and integration with continuous glucose monitoring systems, are expected to drive customer growth [4] - The focus on a fully closed-loop pump system and a multichannel approach is anticipated to improve both top-line and margin performance as the company enters new international markets [4] Financial Metrics - Adjusted EBITDA was reported at $2.77 million, which was a 50% miss compared to analyst estimates of $5.55 million [6] - The operating margin improved to -9.2%, up from -10.7% in the same quarter last year [6] - Sales volumes fell by 4.8% year on year, compared to a decline of 24.7% in the same quarter last year [6] - The company's market capitalization stands at $900.7 million [6]

DexCom Inc. (NASDAQ:DXCM) is one of the best NASDAQ growth stocks to buy for the next 5 years. On October 15, Truist analyst Richard Newitter lowered the firm’s price target on DexCom to $94 from $102 with a Buy rating on the shares as part of the firm’s broader research note previewing Q3 2025 results in the MedTech sector. The firm anticipates healthy revenue and earnings for Q3 across all companies it covers, but warns of stock volatility. Truist Lowers DexCom (DXCM) PT to $94 Ahead of Q3 MedTech Secto ...

Core Viewpoint - Investing in companies that have underperformed but show potential for long-term recovery can yield above-average market returns, exemplified by DexCom and Regeneron Pharmaceuticals, whose shares are down 17% and 21% this year respectively due to company-specific challenges [1]. DexCom - DexCom specializes in continuous glucose monitoring (CGM) systems for diabetes patients, facing challenges such as worse-than-expected financial results and a faster-than-anticipated rebate eligibility impacting revenue [3][4]. - In Q2, DexCom's revenue increased by 15% year-over-year to $1.2 billion, with non-GAAP net earnings per share at $0.48, reflecting an 11.6% increase compared to the previous year, indicating a rebound in financial performance [4]. - The CGM market presents significant growth opportunities, with over 4.5 million insulin patients in the U.S. eligible for coverage but not yet using CGM, and the launch of Stelo as an over-the-counter option for non-insulin patients further expands market potential [6][7]. - DexCom benefits from a network effect due to its large installed base and integration with third-party devices, which could help mitigate tariff threats through a multipronged strategy [7][8]. Regeneron Pharmaceuticals - Regeneron is working to overcome a recent patent cliff, indicating potential for future growth and recovery in its stock performance [8].

Core Insights - DexCom, Inc. is valued at a market cap of $25.5 billion and specializes in continuous glucose monitoring systems for diabetes management [1] - The company is expected to announce its fiscal Q3 earnings for 2025 on October 30, 2023 [1] Financial Performance - Analysts predict a profit of $0.57 per share for Q3 2025, representing a 26.7% increase from $0.45 per share in the same quarter last year [2] - For fiscal 2025, DexCom is expected to report a profit of $2.04 per share, up 24.4% from $1.64 per share in fiscal 2024, with further growth anticipated to $2.56 in fiscal 2026 [3] Stock Performance - DexCom shares have declined 4.7% over the past 52 weeks, underperforming the S&P 500 Index's 14.2% return, but have outperformed the Health Care Select Sector SPDR Fund's 7.5% decline [4] - Following better-than-expected Q2 results, DexCom's shares fell 9.3% in the subsequent trading session despite a 15.2% year-over-year revenue increase to $1.2 billion [5] Analyst Ratings - Wall Street analysts maintain a "Strong Buy" rating for DexCom, with 20 out of 27 analysts recommending "Strong Buy," one suggesting "Moderate Buy," and six indicating "Hold" [6] - The mean price target for DexCom is $100.24, suggesting a potential upside of 52.5% from current levels [6]

Core Viewpoint - DexCom has faced significant challenges in the past year, including a 26% decline in stock price, but it has strong potential for growth in the next five years due to its market position and product offerings [1]. Group 1: Market Opportunity - DexCom specializes in continuous glucose monitoring (CGM) systems, which provide automatic and frequent blood sugar level measurements, leading to better health decisions for diabetes patients [2]. - The company has over 2.5 million customers globally as of 2024, indicating a strong installed base, yet there remains a substantial opportunity for growth in the CGM market [4]. - In the U.S., there are over 4.5 million diabetes patients on insulin therapy who are eligible for CGM but are not currently using it, highlighting a significant untapped market [5]. - The launch of Stelo, an over-the-counter CGM option, has expanded DexCom's addressable market to include diabetes patients not on insulin and those with prediabetes, where CGM penetration is currently low [6]. Group 2: Financial Performance and Valuation - Despite a decline in shares due to lower-than-expected revenue per customer, the company is positioned to improve its financial results as it continues to expand in the CGM market [9]. - DexCom's forward price-to-earnings ratio is 41.5, significantly higher than the healthcare sector average of 15.8, but this is on the lower end compared to its historical averages [10]. - The company has historically maintained high valuation metrics while delivering market-beating returns, suggesting potential for similar performance in the next five to ten years [12]. Group 3: Competitive Landscape and Ecosystem - DexCom competes with Abbott Laboratories in the CGM market, but there is ample opportunity for both companies to succeed given the large global market for CGM technology [12]. - The company benefits from a network effect, as its technology is compatible with various devices and applications, enhancing its ecosystem and attractiveness to developers [13]. - As more compatible technologies are launched, DexCom's appeal to patients is likely to increase, reinforcing its leadership position in the CGM market beyond the next five years [14].

Group 1: Novo Nordisk - Novo Nordisk has faced clinical setbacks and unimpressive financial results, leading to significant underperformance in the market over the past 12 months, but the stock now appears attractive [4][9] - The company has strong prospects in the weight management market, with its product Wegovy continuing to grow in sales and awaiting FDA approval for an oral formulation [5][6] - Novo Nordisk is diversifying its pipeline beyond diabetes and obesity, developing treatments for conditions such as hemophilia, Parkinson's disease, and Alzheimer's disease [7] - The company's forward price-to-earnings ratio is 16.8, slightly above the healthcare industry average of 16.3, indicating reasonable valuation [8] - Novo Nordisk has increased its annual dividend per share by nearly 284% over the past decade, with a forward yield of 2.3%, which is above the S&P 500 average of 1.3% [10] Group 2: DexCom - DexCom specializes in continuous glucose monitoring (CGM) systems for diabetics, which provide constant blood sugar level measurements, distinguishing itself from traditional blood glucose meters [11] - The company experienced a slowdown in top-line growth last year due to higher-than-expected rebates in the U.S., but these are considered short-term issues that do not affect long-term prospects [12] - There is significant growth potential in the U.S. market, as many eligible patients have yet to adopt CGM technology, and globally, only a small percentage of diabetics currently use CGM [13][14] - DexCom is expected to benefit from increased insurance coverage for CGM technology, leading to consistent revenue and earnings growth [14][15]

Core Insights - Medtronic has faced significant challenges in recent years, including a pandemic-induced slowdown and slow revenue growth, but its diabetes care business has been a fast-growing segment [1][2] - The company announced plans to spin off its diabetes care segment into a stand-alone, publicly traded corporation within the next 18 months to simplify its portfolio and focus on high-margin growth opportunities [8] Diabetes Care Segment - Medtronic's diabetes care segment includes products like insulin pumps, continuous glucose monitoring (CGM) systems, insulin pens, and software for tracking patient progress [3][4] - The diabetes care segment generated $2.8 billion in sales during fiscal 2025, reflecting a year-over-year growth of 10.7%, although it still represents a small part of the overall business [6][7] Market Opportunities - There is significant growth potential in the diabetes market, with only 1% of the half-billion adults with diabetes having access to CGM technology as of the end of 2023 [4] - Medtronic's decision to spin off the diabetes care unit may stem from challenges in competing with leaders like Abbott Laboratories and DexCom in the CGM market and Tandem Diabetes Care in the insulin pump niche [9] Overall Business Outlook - Despite losing its fastest-growing segment, Medtronic's overall business remains robust, with a diverse range of products generating consistent revenue and profits [10] - The company is also pursuing U.S. clearance for its Hugo robotic-assisted surgery system, which could unlock significant growth opportunities in the underpenetrated surgical market [11] Dividend and Long-term Performance - Medtronic has a strong track record as a dividend stock, having increased its dividends for 48 consecutive years, positioning it as a potential Dividend King [12] - The company has performed relatively well in the current year compared to broader equity markets and is expected to mitigate the impact of tariffs due to its diversified business model [13]

Eli Lilly - Eli Lilly has been a top-performing pharmaceutical company over the past decade, driven by significant clinical breakthroughs, particularly with tirzepatide, a dual GLP-1/GIP agonist approved by the FDA [2][4] - The company is expected to continue strong top-line growth from tirzepatide, which has been on the market for about three years, and positive results from recent clinical trials for orforglipron have boosted stock performance [4][8] - Eli Lilly is developing retatrutide, a "triple G" drug that targets three gut hormones, and has 11 weight loss candidates in its pipeline, positioning it as a leader in the competitive weight loss market [5][6] - The company received FDA approval for Kisunla for Alzheimer's treatment, marking a significant achievement in a field with few recent approvals [6] - Despite challenges in 2025 due to tariff volatility and disappointing guidance, Eli Lilly is shifting manufacturing back to the U.S., which should mitigate risks from trade policies [7] - The stock's forward price-to-earnings ratio is around 33, which is double the healthcare industry average, but justified by the company's strong performance and growth prospects; dividends have increased by 200% over the past decade [8] DexCom - DexCom specializes in continuous glucose monitoring (CGM) systems, offering superior technology compared to traditional blood glucose meters, providing constant monitoring and frequent updates [9][10] - The adoption of CGM technology has been a significant growth driver, with increasing patient transitions to CGM and better reimbursement from third-party payers leading to rising revenues [10][12] - The CGM market remains underpenetrated in the U.S., with many diabetes patients still not using CGM despite insurance coverage, indicating substantial growth potential [12] - DexCom faces competition from Abbott Laboratories but continues to thrive, with only 1% of diabetic adults globally having access to CGM, suggesting room for multiple successful players [13] - The company has domestic manufacturing capabilities, which should minimize the impact of tariffs, and its forward P/E ratio of around 42, while high, is not unprecedented for a high-growth stock [14][16]