5 Best Medical Technology Stocks to Buy

3. 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 commercialization of continuous glucose monitoring systems in the United States and internationally. On October 27, DexCom, Inc. (NASDAQ:DXCM) reported a Q3 non-GAAP EPS of $0.28 and a revenue of $769.6 million, outperforming Wall Street estimates by $0.04 and $18.56 million, respectively. For full-year 2022, DexCom, Inc. (NASDAQ:DXCM) reported a revenue guidance of approximately $2.88 billion to $2.91 billion, indicating an 18%-19% growth, versus a consensus of $2.89 billion. It is one of the best medical technology stocks to consider. 

On December 12, Citi analyst Joanne Wuensch raised the firm’s price target on DexCom, Inc. (NASDAQ:DXCM) to $146 from $117 and maintained a Buy rating on the shares. 

According to Insider Monkey’s data, 62 hedge funds were bullish on DexCom, Inc. (NASDAQ:DXCM) at the end of the third quarter of 2022, compared to 56 funds in the prior quarter. Brandon Haley’s Holocene Advisors is a significant position holder in the company, with 1.73 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.”