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DexCom (DXCM) Banks on Collaborations, Competition Rife
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On Dec 19, we issued an updated research report on DexCom, Inc. (DXCM - Free Report) . The company has been trading above the broader industry over the past month. The stock has gained 5.5%, higher than the broader industry’s gain of 0.8%.
We believe the glucose monitoring market represents significant opportunity for DexCom. The diabetes market is large and growing. In the third quarter of 2017, management at Dexcom confirmed that the company is well poised to meet the unmet demand in the global diabetic space, especially when it comes to the continuous glucose monitoring facility.
DexCom has collaborative agreements with several companies, which should not only bring in cash in the form of milestone payments and royalties but should also help expand its product portfolio. In this regard, DexCom announced its collaboration in September 2017 with leading wearables brand Fitbit to develop and market products for better management of diabetes and get a clearer picture of overall health with easy-to-use mobile tools.
DexCom continues to focus on international markets, especially Germany. The company is also eyeing the sizeable markets of India, China and Japan. Given the demographic trends and lifestyle in countries outside the United States and Europe, we believe that DexCom has bountiful opportunities in the international market.
However, the company faces reimbursement risks owing to efforts to control healthcare expenses. Further, with an increasing demand for its offerings, DexCom might face supply constraints in the near term.
The market for blood glucose monitoring devices is highly competitive, subject to rapid change and significantly affected by product launches. With respect to the G4 Platinum system, DexCom competes directly with Roche Diabetes Care — a division of Roche Diagnostics; LifeScan, Inc. — a division of Johnson & Johnson; the MediSense and TheraSense divisions of Abbott Laboratories; and Bayer Corporation.
Zacks Rank & Key Picks
DexCom carries a Zacks Rank #3 (Hold).
A few better-ranked medical stocks are athenahealth, Inc. , Align Technology, Inc. (ALGN - Free Report) and Luminex Corporation . Notably, athenahealth, and Align Technology sport a Zacks Rank #1 (Strong Buy) while Luminex carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
athenahealth has a long-term expected earnings growth rate of 22.3%. The stock has rallied roughly 17.1% over a year.
Align Technology has a long-term expected earnings growth rate of 28.9%. The stock has gained 134.5% in a year.
Luminex has a long-term expected earnings growth rate of 16.3%. The stock has gained 4.6% in the past three months.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Image: Bigstock
DexCom (DXCM) Banks on Collaborations, Competition Rife
On Dec 19, we issued an updated research report on DexCom, Inc. (DXCM - Free Report) . The company has been trading above the broader industry over the past month. The stock has gained 5.5%, higher than the broader industry’s gain of 0.8%.
We believe the glucose monitoring market represents significant opportunity for DexCom. The diabetes market is large and growing. In the third quarter of 2017, management at Dexcom confirmed that the company is well poised to meet the unmet demand in the global diabetic space, especially when it comes to the continuous glucose monitoring facility.
DexCom has collaborative agreements with several companies, which should not only bring in cash in the form of milestone payments and royalties but should also help expand its product portfolio. In this regard, DexCom announced its collaboration in September 2017 with leading wearables brand Fitbit to develop and market products for better management of diabetes and get a clearer picture of overall health with easy-to-use mobile tools.
DexCom continues to focus on international markets, especially Germany. The company is also eyeing the sizeable markets of India, China and Japan. Given the demographic trends and lifestyle in countries outside the United States and Europe, we believe that DexCom has bountiful opportunities in the international market.
However, the company faces reimbursement risks owing to efforts to control healthcare expenses. Further, with an increasing demand for its offerings, DexCom might face supply constraints in the near term.
The market for blood glucose monitoring devices is highly competitive, subject to rapid change and significantly affected by product launches. With respect to the G4 Platinum system, DexCom competes directly with Roche Diabetes Care — a division of Roche Diagnostics; LifeScan, Inc. — a division of Johnson & Johnson; the MediSense and TheraSense divisions of Abbott Laboratories; and Bayer Corporation.
Zacks Rank & Key Picks
DexCom carries a Zacks Rank #3 (Hold).
A few better-ranked medical stocks are athenahealth, Inc. , Align Technology, Inc. (ALGN - Free Report) and Luminex Corporation . Notably, athenahealth, and Align Technology sport a Zacks Rank #1 (Strong Buy) while Luminex carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
athenahealth has a long-term expected earnings growth rate of 22.3%. The stock has rallied roughly 17.1% over a year.
Align Technology has a long-term expected earnings growth rate of 28.9%. The stock has gained 134.5% in a year.
Luminex has a long-term expected earnings growth rate of 16.3%. The stock has gained 4.6% in the past three months.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>