Tandem Diabetes Care (TNDM - Free Report) has been gaining from impressive expansion of its product portfolio as well as a steady foray into overseas markets.
In the past year, the stock has rallied 113.9% compared with the industry’s 11.4% rise.
This $4.04 billion worth of leading provider of insulin delivery systems has an earnings growth rate of 44.4% for the next quarter. Also, the company has a trailing four-quarter positive earnings surprise of 66.7%, on average.
Let’s take a closer look at the factors that are working in favor of this Zacks Rank #2 (Buy) stock right now.
Impressive Product Pipeline: Tandem Diabetes constantly undertakes innovation and develops products to cater to consumers’ and clinical needs. Currently, the 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 — by the end of 2019. Apart from this, the company’s product development efforts are focused on bringing Control-IQ to the domestic market. The company is currently anticipating its FDA approval.
The company also plans to launch t:sport Insulin Delivery System, its next-generation hardware platform, in 2020 or 2021. Management plans to submit the pump for 510(k) clearance as an ultimate controller enabled pump in the summer of 2020. Tandem Diabetes’ first t:sport cartridge line is currently in manufacturing stage and the company plans to submit it for CE Mark in 2020.
Robust International Expansion: Tandem Diabetes currently has an international installed base of nearly 22,000. The company’s expansion into three new geographies viz Germany, France and the Benelux countries is expected to contribute to its international revenues. The company recently inked deals with experienced distributors who cater to these markets and looks to expand the t:slim X2 customer base by early 2020.
Basal-IQ Regulatory Approval: Tandem Diabetes recently attained Health Canada approval for the t:slim X2 insulin pump with Basal-IQ technology. Notably, Basal-IQ technology is a predictive low-glucose suspend algorithm which utilizes sensor values from an integrated Dexcom G6 continuous glucose monitor to help lessen the frequency and duration of low-glucose events (hypoglycemia). This clearance is expected to accelerate Tandem Diabetes’ global pump shipments and expand its customer base.
Which Way Are Estimates Headed?
For 2019, the Zacks Consensus Estimate for revenues is pegged at $362.9 million, indicating a rise of 97.4% from the year-ago period. Adjusted loss per share is pinned at 56 cents.
For the fourth quarter, the Zacks Consensus Estimate for revenues is pinned at $108.9 million, calling for year-over-year growth of 43%. The same for adjusted loss stands at 7 cents.
Stocks Worth a Look
A few other top-ranked stocks from the broader medical space are Haemonetics Corporation (HAE - Free Report) , NuVasive, Inc (NUVA - Free Report) and ResMed (RMD - Free Report) . While Haemonetics and ResMed sport a Zacks Rank #1 (Strong Buy), NuVasive carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Haemonetics has a projected long-term earnings growth rate of 13.5%.
NuVasive has an expected long-term earnings growth rate of 10.9%.
ResMed has a long-term earnings growth rate of 12.9%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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