Is DexCom (DXCM) a Smart Long-Term Buy?

ClearBridge Investments, an investment management firm, published its “Large Cap Growth Strategy” first quarter 2021 investor letter – a copy of which can be downloaded here. The ClearBridge Large Cap Growth Strategy underperformed its Russell 1000 Growth Index benchmark during the first quarter. On an absolute basis, the Strategy suffered losses across seven of the eight sectors in which it was invested (out of 11 sectors total). The leading detractors of performance were in the communication services and information technology (IT) sectors, while the financials sector was a contributor. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, ClearBridge Investments Large Cap Growth Strategy mentioned DexCom, Inc. (NASDAQ:DXCM) and explained its insights for the company. Founded in 1999, DexCom, Inc. (NASDAQ:DXCM)  is a San Diego, California-based medical device company with a $48.2 billion market capitalization. DexCom, Inc. (NASDAQ:DXCM)  delivered a -8.35% return since the beginning of the year, while its 12-month returns are up by 23.18%. The stock closed at $492.11 per share on April 15, 2022.

Here is what ClearBridge Investments Large Cap Growth Strategy has to say about DexCom, Inc. (NASDAQ:DXCM) in its Q1 2022 investor letter:

“Positioning moves through the pandemic were focused on improving our up capture in strong markets through increasing our weighting to select growth companies in technology and shadow tech. More recently, we have been adding countercyclicality to the portfolio with our additions in health care. We believe innovators like DexCom (NASDAQ:DXCM), a new position in the quarter that has leading share in the market for glucose monitoring systems for diabetes patients, stand to benefit. These companies offer a more efficient solution to managing chronic health conditions and provide a key point of differentiation for our portfolio from passive strategies going forward.”


Our calculations show that DexCom, Inc. (NASDAQ:DXCM) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. DexCom, Inc. (NASDAQ:DXCM) was in 71 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 53 funds in the previous quarter. DexCom, Inc. (NASDAQ:DXCM) delivered a 7.97% return in the past 3 months.

In December 2021, we published an article that includes DexCom, Inc. (NASDAQ:DXCM) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

Disclosure: None. This article is originally published at Insider Monkey.