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Here's Why You Should Invest in DexCom (DXCM) Stock Now

Zacks Equity Research

DexCom, Inc. DXCM is well poised for growth on the back of lucrative glucose monitoring market, solid international market presence and robust product portfolio.

The stock carries a Zacks Rank #2 (Buy).

Price Performance

Shares of DexCom have gained 37.9%, against the industry’s decline of 3.8% in a year’s time. The stock also outpaced the S&P 500 Index’s increase of 1.1%.



What’s Favoring the Stock?

DexCom continues to gain from the lucrative and growing glucose monitoring market that presents substantial commercial opportunity. Per an article of Research and Markets, the blood glucose monitoring devices market is expected to witness a CAGR of over 9% between 2018 and 2024.

Moreover, the company boasts of a robust product portfolio, which in turn has been bolstering its overall performance. Per management, the company is well poised to achieve long-term target on the back of the expansion of the rollout of G6 and improve access to CGM. With this growing demand in mind, the company is on track to meet its goal of doubling G6 capacity by the end of 2019.

DexCom continues to benefit from strong international presence and is eyeing the sizeable markets of Korea, India, China and Japan. If we go by statistics then more than half of the diabetic population in developing nations remain undiagnosed. Consequently, the company can boost sales by expanding into overseas territory, where the momentum is anticipated to continue in the future.

Additionally, the company’s strategic collaborations and buyouts continue to bolster growth. DexCom has collaborative agreements with several companies, which should not only bring in cash in the form of milestone payments and royalties but should also help expand product use.

Which Way Are Estimates Headed?

For 2019, the Zacks Consensus Estimate for revenues is pegged at $1.29 billion, indicating an improvement of 24.7% from the year-ago period. The same for earnings stands at 80 cents per share, suggesting growth of 166.7% from the year-ago reported figure.

Key Picks

Some better-ranked stocks from the broader medical space are Cardiovascular Systems, Inc. CSII, Quidel Corporation QDEL and Heamonetics Corporation HAE, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Cardiovascular Systems has earnings growth rate for fiscal fourth quarter of 2019 of 33.3%.

Quidel Corporation has a long-term earnings growth rate of 25%.

Heamonetics has a long-term earnings growth rate 13.5%.

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DexCom, Inc. (DXCM) : Free Stock Analysis Report
 
Haemonetics Corporation (HAE) : Free Stock Analysis Report
 
Quidel Corporation (QDEL) : Free Stock Analysis Report
 
Cardiovascular Systems, Inc. (CSII) : Free Stock Analysis Report
 
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