12 Best Healthcare Stocks to Buy and Hold for 5 Years

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4. DexCom, Inc. (NASDAQ:DXCM)

Number of Hedge Fund Holders: 60

DexCom, Inc. (NASDAQ:DXCM), a leader in continuous glucose monitoring (CGM) systems, continues to advance diabetes care with its flagship G6 and G7 devices, which provide real-time glucose tracking and data sharing. At EASD 2025, the company highlighted upcoming features aimed at improving health outcomes and cost-effectiveness, reinforcing its innovation strategy in biosensing technology. These developments have kept DXCM among the best healthcare stocks, despite recent challenges.

Financial performance remains strong, with second-quarter 2025 revenue rising 15.2% year-over-year and earnings per share beating analyst estimates. Analysts maintain a moderate to strong buy consensus on DXCM, with price targets nearing $100, citing robust demand for its CGM systems.

However, September brought challenges after a report alleged unauthorized design changes in the G7 system, linking the issue to severe safety risks, including hospitalizations and deaths. The controversy sparked an 11.76% stock drop and prompted a class action investigation by Pomerantz LLP into potential securities fraud claims.

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