5 Best Diabetes Stocks To Buy Now

4. DexCom, Inc. (NASDAQ:DXCM)

Number of Hedge Fund Holders: 62

DexCom, Inc. (NASDAQ:DXCM) is a California-based medical device company, focused on the design, development, and marketing of continuous glucose monitoring systems in the United States and internationally. The company’s Q3 2022 financial results beat on the top and bottom lines. U.S. revenue grew 17%, while international revenue rose 22%. For full-year 2022, DexCom, Inc. (NASDAQ:DXCM) guided to a revenue of $2.88 billion to $2.91 billion, versus a consensus of $2.89 billion. DexCom, Inc. (NASDAQ:DXCM) is one of the best diabetes stocks to consider. 

On October 28, Cowen analyst Joshua Jennings raised the price target on DexCom, Inc. (NASDAQ:DXCM) to $114 from $85 and maintained an Outperform rating on the shares. The analyst noted the company lifted the lower end of its full-year sales guidance and maintained its targets for operating margin and EBITDA.

Among the hedge funds tracked by Insider Monkey, 62 funds were long DexCom, Inc. (NASDAQ:DXCM) at the end of September 2022, up from 56 funds in the prior quarter. Brandon Haley’s Holocene Advisors is a prominent position holder in the company, with 1.7 million shares worth $139.5 million. 

Here is what ClearBridge Large Cap Growth ESG Strategy has to say about DexCom, Inc. (NASDAQ:DXCM) in its Q2 2022 investor letter: 

“Multiple compression has also hurt higher growth health care companies like DexCom (NASDAQ:DXCM), despite its strong fundamentals. We continue to build out the position as we gain greater visibility on the catalysts of accelerating uptake in Type 2 diabetes patients and the launch of its G7 continuous glucose monitor in the U.S. and Europe. DexCom was hurt in the quarter by market speculation that it would acquire a diabetes pump provider, which would be outside of its core competency.”