5 Best Medical Technology Stocks to Buy

In this article, we discuss 5 best medical technology stocks to buy. If you want to read about some more medical technology stocks, go directly to 12 Best Medical Technology Stocks to Buy.

5. DexCom, Inc. (NASDAQ:DXCM)

Number of Hedge Fund Holders: 56     

DexCom, Inc. (NASDAQ:DXCM), a medical device company, focuses on the design, development, and commercialization of continuous glucose monitoring (CGM) systems. It is one of the top medical technology stocks to invest in. On July 28, the firm posted earnings for the second quarter of 2022, reporting earnings per share of $0.17 and a revenue of $696 million, up more than 17% compared to the revenue over the same period last year. The company is based in California and was founded in 1999. It has a market capitalization of close to $31 billion. 

On July 15, Bernstein analyst Lee Hambright initiated coverage of DexCom, Inc. (NASDAQ:DXCM) stock with an Outperform rating and a $105 price target, highlighting the company’s innovation in medical technology via glucose monitoring.

At the end of the second quarter of 2022, 56 hedge funds in the database of Insider Monkey held stakes worth $1.1 billion in DexCom, Inc. (NASDAQ:DXCM), compared to 58 in the previous quarter worth $1.5 billion.

In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and DexCom, Inc. (NASDAQ:DXCM) was one of them. Here is what the fund said: 

“DexCom, Inc. (NASDAQ:DXCM) is the leading provider of continuous glucose monitoring systems for patients with diabetes. The stock fell along with other premium valuation growth stocks, primarily on multiple contraction. Concern about price competition from Abbott Labs’ Libre product also played a role. Results for the first quarter were solid. Sales increased 22% organically, margins expanded 350 basis points, and the company maintained guidance for continued strong results.

An important new and revolutionary product, the G7, was approved and launched in Europe, and the company expects it to be approved in the U.S. soon. The product is 60% smaller, fully disposable, and designed for extended wear. We remain excited that CGM will become the standard of care for Type 1 diabetics and will be used extensively for Type 2 diabetics as well, which we think will be a major driver of continued sales and profit growth well into the future.”