Tandem Diabetes Care, Inc. (TNDM - Free Report) has been gaining investors’ confidence on consistently upbeat results. Over the past three months, the stock has gained 60.9%, compared with the industry's 5.9% rise and the S&P 500’s gain of 3.4%.
This company offering the smallest durable insulin pump which is also capable of remote feature updates has a market cap of $1.96 billion. The company’s projected long-term earnings growth rate is 20.4% in comparison to the industry’s 16.4% rise.
With solid prospects, this Zacks Rank #2 (Buy) stock is an attractive pick for investors at the moment.
The company’s earnings estimates were revised upward by five analysts with no downward revision over the last 30 days. Further, the Zacks Consensus Estimate for current-year revenues of $155.73 million reflects an improvement of 44.7% year over year.
Per our Zacks Style Score system, Tandem Diabetes has a Growth Score of A, which reflects the company’s solid prospects. Our research shows that stocks with a Growth Style Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best upside potential.
Let’s find out whether the recent positive trend is a sustainable one.
Impressive Product Pipeline
Tandem Diabetes constantly undertakes innovation and develops products to cater to consumers’ and clinical needs. Currently, products under development include AID systems, a next-generation hardware platform, as well as connected (mobile) health offerings. The company is on track to launch its second-generation AID system — t:slim X2 with Control IQ — in the summer of 2019.
Focus on International Markets
In 2017, Tandem Diabetes announced plans to begin commercialization of t:slim X2 during 2018 in some new geographies, including Canada.
Tandem Diabetes is consistently focusing on strengthening global presence. In this regard, the company’s t:slim X2 Insulin Pump is currently under review by Health Canada. On obtaining the approval, Tandem Diabetes is planning to launch t:slim X2 Insulin Pump in Canada in the fourth quarter of 2018.
Raised Guidance Buoys Optimism
Tandem Diabetes recently raised the sales guidance for 2018, buoyed by consistent strength in domestic sales in the third quarter along with the t:slim X2 Insulin Pump launch in select geographies.
Other Key Picks
Other top-ranked stocks in the broader medical space are Intuitive Surgical (ISRG - Free Report) , Amedisys, Inc. (AMED - Free Report) and Masimo Corporation (MASI - Free Report) .
Intuitive Surgical’s long-term expected earnings growth rate is 14.7%. The stock currently carries a Zacks Rank of 2.
Amedisys’ long-term expected earnings growth rate is 19.4%. The stock holds a Zacks Rank #2 at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Masimo’s long-term expected earnings growth rate is 14.8%. The stock has a Zacks Rank #2 at present.
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