This Top Growth Stock Will Outperform the Market in the Next Decade
Medical device specialist DexCom (DXCM) has substantially underperformed the market over the trailing-12-month period. The diabetes-focused company disappointed investors last year due to unimpressive financial results, especially in the second and third quarters.
However, despite its recent woes, DexCom still looks like an excellent long-term option for growth-oriented investors. In fact, the company could beat the market in the next decade. Read on to find out why.
Riding the CGM wave
DexCom develops continuous glucose monitoring (CGM) devices that help diabetes patients track their sugar levels constantly, allowing them to make better decisions for their health.
In 2024, the company launched the newest iteration of its G series, the G7, in the U.S. Lower-than-expected revenue growth came partly as a result of a sharp increase in the number of patients receiving rebates. DexCom’s shares fell off a cliff after it released its Q2 results in late July, but that drop was not out of the ordinary when looking at the company’s long-term performance. Consider DexCom’s performance from 2005 to 2018.
DXCM Total Return Level data by YCharts.
Whether it’s a rebate issue or some other factor, DexCom has seen its stock price fall off a cliff on many occasions. One constant throughout it all is the increased adoption of CGM technology, which has allowed DexCom to bounce back every single time. And although it is still far below its pre-July levels, DexCom’s shares have performed well since the post-earnings debacle.
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