Latest news with #DexCom
Business Insider
30-05-2025
- Business
- Business Insider
DexCom initiated with a Buy at Goldman Sachs
Goldman Sachs initiated coverage of DexCom (DXCM) with a Buy rating and $104 price target as part of a broader research note launching coverage on Diabetes Medical Technology. Diabetes technology is poised to sustain double-digit growth, and DexCom offers potential upside from consumer-related adoption and strong profitability leverage that should evidence through the balance of 2025, the analyst tells investors in a research note. The market also underappreciates the degree of P&L upside in DexCom model as gross margins scale, Goldman Sachs added. Confident Investing Starts Here:
Yahoo
28-05-2025
- Business
- Yahoo
Prediction: These 2 Stocks Will Beat the Market in the Next Decade
Eli Lilly and DexCom have been market-beaters over the past decade. Eli Lilly could ride the wave of a strong lineup and deep pipeline, especially in weight management. DexCom's devices are valuable to diabetes patients, but there's still a significant untapped opportunity. 10 stocks we like better than Eli Lilly › Investors typically want to beat the market over the long run. Though it's not an easy task, it certainly is possible with the right companies. Let's consider two corporations that could help you do better than average in the next decade: Eli Lilly (NYSE: LLY) and DexCom (NASDAQ: DXCM). Eli Lilly has been one of the best-performing pharmaceutical giants in the past 10 years. Though that doesn't guarantee future success, it's worth highlighting what has led to the company's strong showing. Lilly has made significant clinical breakthroughs in recent years, none more important than tirzepatide, a medicine sold as Mounjaro in treating diabetes, and Zepbound in managing weight. It was the first dual GLP-1/GIP agonist approved by the U.S. Food and Drug Administration. Here are two ways in which that's relevant to the company's future performance. First, tirzepatide hasn't been on the market that long, having earned approval about three years ago. It will continue delivering excellent top-line growth. Second, even more clinical successes like tirzepatide could help the stock perform well. Eli Lilly recently released positive data from a phase 3 clinical trial for orforglipron, an oral GLP-1 medicine; the strong results sent the stock price soaring. The drugmaker is also working on retatrutide, which mimics the action of not just two gut hormones (as tirzepatide does), but three. Lilly dubbed it "triple G." Retatrutide could be yet another breakthrough. In total, the company has 11 weight loss candidates in the pipeline. Even with mounting competition in this field, Eli Lilly looks like a runaway leader compared to any company not named Novo Nordisk. And that's before we mention the rest of the pipeline. Last year, Lilly earned approval for Kisunla in treating Alzheimer's disease, another significant win considering that very few medicines have gotten the green light from regulators in this area in the past 20 years. Lilly has not performed well in 2025 due to tariff-induced volatility, and disappointing bottom-line guidance for the full year. However, the company is pivoting its manufacturing back into the U.S., something it has been doing for years -- so even if President Donald Trump's trade agenda survives his administration, the drugmaker should be fine. And while the stock's forward price-to-earnings ratio of around 33 is around twice the average of 16 for the healthcare industry, the company's better-than-average results and excellent prospects justify its valuation. Eli Lilly is a terrific dividend stock. The company has increased its payouts by 200% over the past 10 years. And the stock should deliver superior returns through 2035, especially for shareholders who opt to reinvest the dividend. DexCom specializes in developing and marketing continuous glucose monitoring (CGM) systems that help diabetes patients keep track of their blood sugar levels. The company's appeal is the superiority of its devices compared to the alternatives. With blood glucose meters, patients use a painful finger prick (or something similar) to collect a small blood sample to know their measurement at that specific point in time. In contrast, once installed, CGMs constantly monitor their status, day and night, with measurements made up to every five minutes. That's 12 per hour and 288 per day -- no manual meter can match that. Strong adoption of the technology has been a massive tailwind for DexCom. Patients are switching to CGM, and third-party payers are increasingly reimbursing for it. This has resulted in growing revenue and earnings over the past decade, and a strong, if somewhat volatile, stock-market performance. Here's more good news: DexCom has consistently pointed out that the CGM market remains underpenetrated. In the U.S., the number of diabetes patients who use CGM is much lower than the number whose use would be covered by insurance. Furthermore, the company has routinely entered new markets to expand its addressable population. DexCom does have to deal with stiff competition from Abbott Laboratories, but has remained successful nonetheless. Abbott pointed out about 18 months ago that just 1% of diabetic adults worldwide had access to CGM. So there's space for multiple winners over the long run. And while tariffs could be a threat, DexCom does significant manufacturing for U.S. consumers domestically. Management expects minimal impact from tariffs. Lastly, though DexCom's recent forward P/E of around 42 looks high, it's not far from the lowest point it has seen in years: A high-growth stock, DexCom has generally traded at high premiums and has still performed better than the broader market. Its valuation won't kill momentum in the next decade. And in the meantime, the stock should once again deliver outsize returns as DexCom makes headway into the massive CGM market. Before you buy stock in Eli Lilly, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Eli Lilly wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Prosper Junior Bakiny has positions in Eli Lilly and Novo Nordisk. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool recommends DexCom and Novo Nordisk and recommends the following options: long January 2027 $65 calls on DexCom and short January 2027 $75 calls on DexCom. The Motley Fool has a disclosure policy. Prediction: These 2 Stocks Will Beat the Market in the Next Decade was originally published by The Motley Fool Sign in to access your portfolio
Globe and Mail
27-05-2025
- Business
- Globe and Mail
Prediction: These 2 Stocks Will Beat the Market in the Next Decade
Investors typically want to beat the market over the long run. Though it's not an easy task, it certainly is possible with the right companies. Let's consider two corporations that could help you do better than average in the next decade: Eli Lilly (NYSE: LLY) and DexCom (NASDAQ: DXCM). 1. Eli Lilly Eli Lilly has been one of the best-performing pharmaceutical giants in the past 10 years. Though that doesn't guarantee future success, it's worth highlighting what has led to the company's strong showing. Lilly has made significant clinical breakthroughs in recent years, none more important than tirzepatide, a medicine sold as Mounjaro in treating diabetes, and Zepbound in managing weight. It was the first dual GLP-1/GIP agonist approved by the U.S. Food and Drug Administration. Here are two ways in which that's relevant to the company's future performance. First, tirzepatide hasn't been on the market that long, having earned approval about three years ago. It will continue delivering excellent top-line growth. Second, even more clinical successes like tirzepatide could help the stock perform well. Eli Lilly recently released positive data from a phase 3 clinical trial for orforglipron, an oral GLP-1 medicine; the strong results sent the stock price soaring. The drugmaker is also working on retatrutide, which mimics the action of not just two gut hormones (as tirzepatide does), but three. Lilly dubbed it "triple G." Retatrutide could be yet another breakthrough. In total, the company has 11 weight loss candidates in the pipeline. Even with mounting competition in this field, Eli Lilly looks like a runaway leader compared to any company not named Novo Nordisk. And that's before we mention the rest of the pipeline. Last year, Lilly earned approval for Kisunla in treating Alzheimer's disease, another significant win considering that very few medicines have gotten the green light from regulators in this area in the past 20 years. Lilly has not performed well in 2025 due to tariff-induced volatility, and disappointing bottom-line guidance for the full year. However, the company is pivoting its manufacturing back into the U.S., something it has been doing for years -- so even if President Donald Trump's trade agenda survives his administration, the drugmaker should be fine. And while the stock's forward price-to-earnings ratio of around 33 is around twice the average of 16 for the healthcare industry, the company's better-than-average results and excellent prospects justify its valuation. Eli Lilly is a terrific dividend stock. The company has increased its payouts by 200% over the past 10 years. And the stock should deliver superior returns through 2035, especially for shareholders who opt to reinvest the dividend. 2. DexCom DexCom specializes in developing and marketing continuous glucose monitoring (CGM) systems that help diabetes patients keep track of their blood sugar levels. The company's appeal is the superiority of its devices compared to the alternatives. With blood glucose meters, patients use a painful finger prick (or something similar) to collect a small blood sample to know their measurement at that specific point in time. In contrast, once installed, CGMs constantly monitor their status, day and night, with measurements made up to every five minutes. That's 12 per hour and 288 per day -- no manual meter can match that. Strong adoption of the technology has been a massive tailwind for DexCom. Patients are switching to CGM, and third-party payers are increasingly reimbursing for it. This has resulted in growing revenue and earnings over the past decade, and a strong, if somewhat volatile, stock-market performance. DXCM Revenue (Annual) data by YCharts. Here's more good news: DexCom has consistently pointed out that the CGM market remains underpenetrated. In the U.S., the number of diabetes patients who use CGM is much lower than the number whose use would be covered by insurance. Furthermore, the company has routinely entered new markets to expand its addressable population. DexCom does have to deal with stiff competition from Abbott Laboratories, but has remained successful nonetheless. Abbott pointed out about 18 months ago that just 1% of diabetic adults worldwide had access to CGM. So there's space for multiple winners over the long run. And while tariffs could be a threat, DexCom does significant manufacturing for U.S. consumers domestically. Management expects minimal impact from tariffs. Lastly, though DexCom's recent forward P/E of around 42 looks high, it's not far from the lowest point it has seen in years: DXCM PE Ratio (Forward) data by YCharts. A high-growth stock, DexCom has generally traded at high premiums and has still performed better than the broader market. Its valuation won't kill momentum in the next decade. And in the meantime, the stock should once again deliver outsize returns as DexCom makes headway into the massive CGM market. Should you invest $1,000 in Eli Lilly right now? Before you buy stock in Eli Lilly, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Eli Lilly wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor 's total average return is957% — a market-crushing outperformance compared to167%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Prosper Junior Bakiny has positions in Eli Lilly and Novo Nordisk. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool recommends DexCom and Novo Nordisk and recommends the following options: long January 2027 $65 calls on DexCom and short January 2027 $75 calls on DexCom. The Motley Fool has a disclosure policy.
Yahoo
17-05-2025
- Business
- Yahoo
Can DexCom, Inc. (NASDAQ:DXCM) Maintain Its Strong Returns?
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). By way of learning-by-doing, we'll look at ROE to gain a better understanding of DexCom, Inc. (NASDAQ:DXCM). ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In short, ROE shows the profit each dollar generates with respect to its shareholder investments. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for DexCom is: 24% = US$535m ÷ US$2.3b (Based on the trailing twelve months to March 2025). The 'return' refers to a company's earnings over the last year. That means that for every $1 worth of shareholders' equity, the company generated $0.24 in profit. Check out our latest analysis for DexCom One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. Pleasingly, DexCom has a superior ROE than the average (12%) in the Medical Equipment industry. That is a good sign. However, bear in mind that a high ROE doesn't necessarily indicate efficient profit generation. Especially when a firm uses high levels of debt to finance its debt which may boost its ROE but the high leverage puts the company at risk. Virtually all companies need money to invest in the business, to grow profits. That cash can come from issuing shares, retained earnings, or debt. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. In this manner the use of debt will boost ROE, even though the core economics of the business stay the same. It's worth noting the high use of debt by DexCom, leading to its debt to equity ratio of 1.08. There's no doubt the ROE is impressive, but it's worth keeping in mind that the metric could have been lower if the company were to reduce its debt. Debt increases risk and reduces options for the company in the future, so you generally want to see some good returns from using it. Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. A company that can achieve a high return on equity without debt could be considered a high quality business. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE. But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So you might want to check this FREE visualization of analyst forecasts for the company. But note: DexCom may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-05-2025
- Business
- Yahoo
DXCM Q1 Earnings Call: Coverage Expansion and Product Pipeline Shape 2025 Outlook
Medical device company DexCom (NASDAQ:DXCM) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 12.5% year on year to $1.04 billion. The company expects the full year's revenue to be around $4.6 billion, close to analysts' estimates. Its non-GAAP profit of $0.32 per share was in line with analysts' consensus estimates. Is now the time to buy DXCM? Find out in our full research report (it's free). Revenue: $1.04 billion vs analyst estimates of $1.02 billion (12.5% year-on-year growth, 1.8% beat) Adjusted EPS: $0.32 vs analyst estimates of $0.33 (in line) Adjusted EBITDA: $230.4 million vs analyst estimates of $251.9 million (22.2% margin, 8.5% miss) The company reconfirmed its revenue guidance for the full year of $4.6 billion at the midpoint Operating Margin: 12.9%, up from 11% in the same quarter last year Free Cash Flow Margin: 9.3%, down from 16.5% in the same quarter last year Organic Revenue rose 13.8% year on year (24.8% in the same quarter last year) Market Capitalization: $33.93 billion DexCom's first quarter results reflected ongoing momentum in its core continuous glucose monitoring (CGM) business, with management attributing growth to expanded commercial reach, increased patient starts—particularly among type 2 non-insulin users—and new product enhancements. CEO Kevin Sayer cited record levels of new customer acquisition, driven by broadened prescriber activity and new payer access wins, as well as the recent launch of Stelo, DexCom's over-the-counter biosensor, and updates to the G7 platform. Looking forward, management underscored the importance of continued payer coverage expansion, particularly with all three major pharmacy benefit managers (PBMs) now committed to covering DexCom's G7 for wider patient populations. CFO Jereme Sylvain emphasized the company's focus on managing supply chain costs and margin pressures, while maintaining investment in product innovation and operational efficiency. Sayer stated, 'We believe we can continue to demonstrate our value time and time again,' highlighting DexCom's efforts to secure broader access, data-driven outcomes, and regulatory clearances. DexCom's management provided detailed context on the drivers of first quarter performance and addressed several business-critical developments impacting the outlook for 2025. Type 2 Diabetes Access Gains: Management emphasized that recent wins with large PBMs have accelerated adoption among type 2 non-insulin users. The company saw a notable uptick in new patient starts from this population, which is now a material portion of overall new additions. Stelo Launch and Uptake: The over-the-counter Stelo sensor, targeting type 2 diabetes, prediabetes, and wellness users, continues to attract new customers. Stelo's app enhancements and expanded distribution, including availability on Amazon, have driven over 200,000 downloads to date. 15-Day G7 System Clearance: DexCom secured FDA approval for a 15-day wear G7 sensor, increasing convenience and potentially improving margins. The product is slated for launch in the second half of the year, with work underway to ensure compatibility with insulin pumps and payer coverage. Operational and Supply Dynamics: The company navigated short-term supply constraints by expediting shipments and working closely with distribution partners. Management acknowledged incremental freight costs but confirmed that manufacturing output and product quality have stabilized. FDA Warning Letter Response: DexCom addressed an FDA warning letter received in March, implementing corrective process controls without impacting new product approvals or ongoing distribution. Management expects to resolve outstanding issues while continuing to prioritize innovation. Management's outlook for 2025 centers on broadening access for DexCom's CGM products, scaling adoption among type 2 diabetes patients, and improving operational efficiency amid cost pressures. Broader Payer Coverage: Coverage expansion among major PBMs is expected to drive growth in the type 2 non-insulin segment, unlocking a larger addressable market and supporting continued high rates of new patient acquisition. Product Pipeline Execution: The upcoming launch of the 15-day G7 sensor and ongoing software enhancements—such as Stelo app updates and integration with third-party wellness platforms—are positioned to support retention, differentiation, and margin improvement over time. Margin Management and Cost Controls: Management highlighted ongoing programs to offset elevated freight costs and inflationary pressures, including leveraging prior investments in automation, AI, and sales force expansion. The ability to balance investment with efficiency is seen as key to maintaining operating margins despite external headwinds. Matt Taylor (Jefferies): Asked about the closure of the gap between volume and revenue growth. Management confirmed inventory normalization and record new patient starts, indicating that volume growth remains robust and consistent with earlier trends. Larry Biegelsen (Wells Fargo): Questioned why full-year guidance was unchanged despite strong Q1 organic growth. CFO Jereme Sylvain said it was too early to adjust guidance after one quarter, emphasizing a commitment to deliver on full-year targets. Danielle Antalffy (UBS): Sought insight on DexCom's resilience in a potential recession. Management cited strong payer coverage and the cost-saving value of CGM to health systems, expressing confidence in the company's positioning relative to peers. Jeff Johnson (Baird): Inquired about gross margin cadence and whether manufacturing issues persisted. Management stated margin improvement is expected later in the year and indicated that manufacturing output and quality are on track, with no ongoing process issues. Jayson Bedford (Raymond James): Probed on international revenue softness and supply dynamics. Management noted localized strength in Japan and France but acknowledged timing variability in international coverage wins, resulting in some quarterly choppiness. Looking ahead, the StockStory team will monitor (1) execution of the 15-day G7 system launch and its adoption rates, (2) continued expansion of coverage for type 2 non-insulin diabetes patients among payers, and (3) the pace at which supply chain costs normalize and margins recover. Additional signposts include data readouts from the type 2 diabetes randomized controlled trial and further growth in Stelo's user base. DexCom currently trades at a forward P/E ratio of 40×. Is the company at an inflection point that warrants a buy or sell? The answer lies in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
