5 Best Medical Technology Stocks To Buy Now

In this article, we discuss 5 of the best medical device stocks to buy now. If you want to go through our detailed medical technology industry discussion, head directly to the 12 Best Medical Technology Stocks To Buy Now.

5. DexCom, Inc. (NASDAQ:DXCM)

Number of Hedge Fund Holders: 78

DexCom, Inc. (NASDAQ:DXCM) is a firm dedicated to the development, manufacturing, production, and distribution of continuous glucose monitoring (CGM) systems tailored for efficient diabetes management. The CGM system comprises a sensor device and a backend system, offering real-time data on glucose levels, body temperature, and contextual information in a user-friendly format. These insights are of significant value to both patients and healthcare professionals.

Following the release of its earnings report on October 27, shares of DexCom, Inc. (NASDAQ:DXCM) experienced a notable surge. The report revealed that the market for “continuous glucose monitoring devices” remains resilient despite the adoption of Ozempic, and this resilience is anticipated to continue. The company demonstrated strong sales growth, with a remarkable 26% year-over-year increase, reaching $975 million—exceeding the estimated $940 million. Moreover, profit margins expanded at a rate surpassing expectations, leading to earnings of $0.50 per share, well above the projected $0.34.

78 out of the 910 hedge funds part of Insider Monkey’s Q3 2023 database were DexCom, Inc. (NASDAQ:DXCM)’s investors. Israel Englander’s Millennium Management is the largest investor out of these, owning 2.78 million shares that are worth $259.5 million..

Baron Health Care Fund made the following comment about DexCom, Inc. (NASDAQ:DXCM) in its Q3 2023 investor letter:

“DexCom, Inc. (NASDAQ:DXCM) is a leading provider of continuous glucose monitoring technology (CGM) for people with diabetes. The stock declined after Novo Nordisk released SELECT trial results. The trial results have led to investor concerns that Wegovy and medications in the same class (Ozempic, Mounjaro, and other drugs in development) may be broadly reimbursed by payors and widely adopted. This has raised questions about the long-term impact of GLP-1 drugs on the size of DexCom’s addressable market and the terminal value of the stock as these new medications could slow the progression of diabetes for those who are pre-diabetic and reduce the need for insulin for those with Type 2 diabetes. We think GLP-1 drugs will be used in conjunction with CGM technology, which will remain a critical diabetes management tool. We continue to believe DexCom has an attractive long-term growth runway ahead.”