In this article, we will be taking a look at the 10 best diabetes stocks to buy according to billionaires.
The Growing Market and Innovation in Continuous Glucose Monitoring (CGM) Technology
The WHO estimates that 422 million people worldwide suffer from diabetes, with the majority residing in low- or middle-income countries. On average, diabetes directly contributes to 1.5 million deaths annually. Over the past few decades, there has been a steady rise in both the prevalence and the number of cases of diabetes. Nonetheless, the International Diabetes Federation estimates that 500 million people worldwide presently have diabetes, and that figure is predicted to increase by 25% by 2030 and 51% by 2045.
One medical device used to assist manage diabetes, both type 1 and type 2, is the continuous glucose monitor (CGM). The market has grown dramatically in recent years, and it is currently a rapidly expanding category of diabetes care equipment. The demand for advanced diabetes care goods, including insulin pumps, pens, and continuous glucose monitoring (CGM) equipment, was estimated by GlobalData to be worth $21.8 billion in 2023. GlobalData projects that the market will reach $33.4 billion in revenue by 2030, growing at a compound annual growth rate (CAGR) of 6.34%.
The GlobalData marketed products database shows that there are currently 97 products in the CGM category. Most of these devices are standard CGMs, with only a few being implanted sensors. 133 products are either approved or in the development stage, according to the GlobalData pipeline products database. The research indicates that this market niche is expanding quickly and is a hub for innovative new technologies like implantable CGMs.
Today, CGM technology incorporates AI. For example, Roche introduced Accu-Chek SmartGuide, a cutting-edge CGM gadget driven by predictive AI. At the launch, Julien Boisdron, Chief Medical Officer for Roche Diabetes Care, called it “a solution more than a CGM.” He described how the system, which consists of two algorithms and a sensor, aids in data visualization and prediction.
The Rise of GLP-1 Drugs: Opportunities, Growth, and Challenges
A new era of opportunity has arrived for the management of diabetes and its associated complications. These novel strategies can effectively treat the co-occurring conditions of obesity and diabetes. A class of drugs known as glucagon-like peptide-1 (GLP-1) agonists is used to treat obesity and type 2 diabetes mellitus (T2DM). By 2030, the GLP-1 market, which is equally driven by obesity and diabetes, is expected to grow to $100 billion. About 9% of Americans, or 30 million people, may be GLP-1 users by this point.
Twelve percent of adult Americans report having taken a GLP-1 drug at some point, according to the most recent KFF Health Tracking poll. In the previous five years, 22% of patients with a diagnosis of obesity or overweight also took GLP-1, while 43% of patients with diabetes had the drug. Adults who have heard “a little” or “a lot” about these medications have gone from 70% to 82% over the past year, while those who have heard “a lot” about them have increased from 19% to 32%.
However, problems have arisen due to the increased demand for these diabetes and weight-loss medications. An “explosion in the unlicensed sale of medication online” is a potential threat, according to the National Pharmacy Association (NPA). Semaglutides, which are sold under the brand name Ozempic, help persons with type 2 diabetes manage their blood sugar. However, in other countries, like the US, where they are sold under the name Wegovy, they are also commonly used to help people lose weight. NPA chairman Nick Kaye stated:
“Pharmacists remain deeply concerned that the current medicine shortages crisis could lead to an explosion in the unlicensed sale of medication online.”
Given this, we will take a look at some of the best diabetes stocks to buy according to billionaires.
Pixabay/Public Domain
Our Methodology
For our list, we selected diabetes-related stocks from the HRTS GLP-1, Obesity, and Cardiometabolic ETF, as well as the EDOC Telemedicine and Digital Health ETF. We then ranked these stocks based on the number of billionaire investors holding stakes in them, as per Insider Monkey’s database of Q4 2024, prioritizing those with the highest billionaire ownership.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Here is our list of the 10 best diabetes stocks to buy according to billionaires.
10. Insulet Corporation (NASDAQ:PODD)
Number of Billionaires: 11
Dollar Value of Billionaire Holdings: $560,255,037
Insulet Corporation (NASDAQ:PODD), based in Acton, Massachusetts, specializes in diabetes management through its innovative Omnipod platform, a tubeless, wearable insulin pump system. The Omnipod Insulin Management System provides continuous, needle-free insulin delivery, enhancing convenience for individuals with Type 1 and Type 2 diabetes.
Insulet Corporation (NASDAQ:PODD) reported strong Q4 2024 earnings on February 20, 2025, with total revenue reaching $597.5 million, a 17.2% year-over-year (YoY) increase, driven by growing demand for its Omnipod insulin management system. The company’s Omnipod revenue totaled $585.7 million, with U.S. sales rising 12.4% YoY to $443.7 million, while international sales surged 33.5% YoY to $142.0 million, which highlights successful global expansion.
Despite a strong gross margin of 72.1%—up 120 basis points due to improved production efficiencies—the company’s operating margin declined to 18.3%. However, free cash flow grew significantly to $305.4 million for FY 2024, up from $70.1 million the previous year, reflecting stronger financial performance.
Investors are drawn to Insulet Corporation (NASDAQ:PODD)’s innovative tubeless insulin pump design, which offers a convenient alternative to traditional pumps, leading to increased adoption. As one of the best diabetes stocks, recent developments reinforce the corporation’s leadership. The Omnipod 5 has launched in several European countries with Abbott’s FreeStyle Libre 2+ and Dexcom’s G6 CGM sensors, expanding its reach. Meanwhile, clinical data from the SECURE-T2D study validate Omnipod 5’s effectiveness for Type 2 diabetes patients. As the #1 prescribed AID system in the U.S., Insulet Corporation (NASDAQ:PODD) continues to strengthen its market position and drive future growth.
9. Teladoc Health, Inc. (NYSE:TDOC)
Number of Billionaires:11
Dollar Value of Billionaire Holdings: $212,636,151
Teladoc Health, Inc. (NYSE:TDOC), a leader in virtual healthcare, specializes in chronic disease management, particularly for diabetes. Its comprehensive diabetes program includes cellular-enabled glucose meters, personalized coaching from specialists, AI-powered tools for predictive insights, and digital platforms for tracking and engagement. The company primarily serves enterprises, insurers, and healthcare providers, integrating its services into wellness programs while also offering subscription-based plans and pay-per-visit models for individuals.
Teladoc Health, Inc. (NYSE:TDOC)’s Q4 2024 and full-year results, released on February 26, 2025, reflect a challenging period for the company. Revenue declined 3% year-over-year in Q4 to $640.5 million, while full-year revenue dipped 1% to $2.57 billion. The decrease was primarily driven by lower access fee revenue, with the BetterHelp segment experiencing a significant decline despite some growth in other areas.
The company’s profitability remains a concern, reporting a Q4 net loss of $48.4 million and a full-year net loss of $1.0 billion ($5.87 per share). This steep loss was largely due to a $790 million non-cash goodwill impairment charge related to BetterHelp, alongside restructuring costs and amortization expenses. Adjusted EBITDA also declined 35% in Q4 to $74.8 million and 5% for the full year to $310.7 million, signaling ongoing financial pressure.
Despite these challenges, Teladoc Health, Inc. (NYSE:TDOC) remains one of the best diabetes stocks, with its Integrated Care segment growing by 4% for the year and continuing to support chronic disease management, including diabetes. Its cash position remains strong at $1.3 billion as of December 31, 2024, though operating cash flow fell to $293.7 million from $350 million the previous year. BetterHelp revenue fell 8%, highlighting concerns about increasing competition in the virtual mental health space.
Looking ahead, the corporation’s 2025 guidance projects revenue between $2.468 and $2.576 billion, with adjusted EBITDA ranging from $278 to $319 million. The company anticipates a net loss per share of ($1.10) to ($0.50) but expects free cash flow to improve to $190-$220 million. Meanwhile, a new partnership with Amazon integrates Teladoc Health, Inc. (NYSE:TDOC)’s services with Alexa, which enhances accessibility and positioning the company to capitalize on digital health innovations.
8. Abbott Laboratories (NYSE:ABT)
Number of Billionaires: 11
Dollar Value of Billionaire Holdings: $1,939,020,330
Abbott Laboratories (NYSE:ABT) specializes in medical devices, diagnostics, nutrition, and branded generic pharmaceuticals. In diabetes care, its flagship FreeStyle Libre system, a continuous glucose monitoring (CGM) device, eliminates the need for routine finger pricks.
Abbott Laboratories (NYSE:ABT) remains a top diabetes stock, with its diabetes care segment serving as a major growth driver. In Q4 2024, sales from this division reached $1.8 billion, marking a 23% year-over-year increase, while full-year CGM sales totaled $6.5 billion, reflecting 22% growth. The FreeStyle Libre franchise continues to dominate the CGM market, with the company expanding its portfolio through innovations like the Lingo CGM system.
Financially, the corporation delivered a strong Q4 2024 performance, with total sales reaching $11 billion, reflecting a 7.2% increase on a reported basis and 10.1% organic growth (excluding COVID-19 testing sales). The Medical Devices segment grew by 14%, fueled by demand for diabetes care and structural heart products. Diagnostics sales rose 6%, led by a 16% increase in rapid diagnostics, while nutrition sales climbed 7%, with Ensure generating over $3 billion annually.
The company’s profitability remained strong, with adjusted earnings per share rising 13% to $1.34 and operating cash flow totaling $8.5 billion. Abbott Laboratories (NYSE:ABT) reinvested in capacity expansions while returning $5 billion to shareholders through dividends and buybacks. Looking ahead, the company forecasts organic sales growth of 7.5%–8.5% for 2025 and adjusted EPS between $5.05 and $5.25. Key drivers include the continued expansion of FreeStyle Libre CGM systems, the launch of new products like the GridX mapping catheter, and strong momentum in structural heart devices, including MitraClip and TriClip.
7. Novo Nordisk A/S (NYSE:NVO)
Number of Billionaires: 11
Dollar Value of Billionaire Holdings: $3,396,274,951
Novo Nordisk A/S (NYSE:NVO), standing seventh among the best diabetes stocks to buy according to billionaires, is a global healthcare leader specializing in diabetes care, obesity management, and chronic diseases, with diabetes treatments making up 85% of its business. Its portfolio includes insulin analogs, GLP-1 receptor agonists, and oral antidiabetic drugs like Rybelsus, Ozempic, and Tresiba.
Novo Nordisk A/S (NYSE:NVO) delivered exceptional financial results in 2024, which was driven by strong demand for its diabetes and obesity treatments. Their revenue surged 25% to DKK 290.4 billion ($40.5 billion), with Q4 revenue alone rising 30% year-over-year. This growth was primarily fueled by semaglutide-based drugs like Wegovy and Ozempic, which generated DKK 186 billion ($24.9 billion), accounting for 60% of total sales.
The company’s profitability remained strong, with operating profit increasing 26% to DKK 128.3 billion and net profit rising 21% to DKK 101 billion. Despite higher R&D expenses (+48%), gross margin improved to 84.7%, reflecting efficient cost management. Operating cash flow reached DKK 121 billion, though free cash flow turned negative due to capital expenditures and the Catalent acquisition.
Investors remain optimistic about Novo Nordisk A/S (NYSE:NVO) due to pipeline innovation with promising drugs like CagriSema and amycretin, supply chain improvements resolving Wegovy shortages, and strategic acquisitions, including Catalent sites, which enhance production capacity and ensure long-term supply stability.
6. DexCom, Inc. (NASDAQ:DXCM)
Number of Billionaires: 15
Dollar Value of Billionaire Holdings: $1,347,351,505
DexCom, Inc. (NASDAQ:DXCM), founded in 1999 and headquartered in San Diego, is a leader in diabetes care, specializing in Continuous Glucose Monitoring (CGM) systems. Its wearable devices, like the Dexcom G6 and G7, provide real-time glucose monitoring without finger pricks, transmitting data to smartphones and smartwatches for better diabetes management. The company generates revenue through direct device sales, software integrations, and partnerships with automated insulin delivery systems like Tandem Diabetes Care and Beta Bionics.
DexCom, Inc. (NASDAQ:DXCM) reported strong financial results for Q4 and fiscal year 2024, demonstrating consistent growth despite some challenges. Their Q4 revenue reached $1.11 billion, an 8% increase year-over-year, with international sales seeing a significant 17% rise. Gross profit, however, decreased to 59.4% of revenue, impacted by higher production costs and a non-cash charge. Operating income also declined due to increased strategic investments, but net income remained solid at $177.8 million, or $0.45 per share.
For the full year, DexCom, Inc. (NASDAQ:DXCM)’s total revenue rose by 11% to $4.03 billion, which was fueled by both U.S. and international growth. The company also expanded its product portfolio, adding over 140,000 users for its new over-the-counter Stelo CGM within four months. Additionally, the business secured key reimbursement wins, including coverage for Dexcom ONE+ in France and expanded U.S. coverage for non-insulin-dependent diabetes patients. Looking ahead, DexCom, Inc. (NASDAQ:DXCM)’s continued innovation is highlighted by its FDA submission for the G7 15-day CGM system, with approval expected in late 2025.
5. AstraZeneca PLC (NASDAQ:AZN)
Number of Billionaires: 14
Dollar Value of Billionaire Holdings: $2,202,563,718
AstraZeneca PLC (NASDAQ:AZN) is a global biopharmaceutical company focused on discovering, developing, and commercializing prescription medicines across various therapeutic areas, including diabetes. Its diabetes portfolio features innovative treatments such as SGLT2 inhibitors (e.g., FORXIGA), GLP-1 receptor agonists (e.g., Bydureon BCise), and DPP-4 inhibitors (e.g., Saxagliptin), aimed at managing blood sugar levels and offering additional health benefits like weight loss and reduced blood pressure. The company also develops combination therapies to enhance treatment convenience and efficacy, catering to a broad range of patients, from those in early diabetes stages to those with advanced cases and comorbidities.
AstraZeneca PLC (NASDAQ:AZN)’s Q4 2024 financial results highlight robust growth despite some challenges. Total revenue for the year increased by 21%, driven by strong performances across all therapy areas and geographies, particularly in emerging markets, which grew by 22%. This growth reflects rising demand for the company’s products and effective market penetration.
In terms of regional performance, China saw a slight decline in Q4 due to lower demand for respiratory products, although it grew by 11% for the year. Emerging markets overall showed strong growth. AstraZeneca PLC (NASDAQ:AZN)’s product sales grew by 19%, with alliance and collaboration revenues increasing by 55% and 54%, respectively, demonstrating strength in its portfolio and successful partnerships. High gross margins of 81.2% indicate strong pricing power and efficient cost management.
The company continued investing in research and development, with a 19% increase in R&D expenses, ensuring future growth and innovation. Despite an increase in net debt to $24.6 billion, the business’s financial position remains solid, with a consistent dividend payout of $3.10 per share appealing to investors seeking stable returns. As one of the best diabetes stocks, AstraZeneca PLC (NASDAQ:AZN) also made strides in diabetes care, with a positive Phase III trial for a new diabetes drug that further solidifies its presence in the market.
4. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)
Number of Billionaires: 13
Dollar Value of Billionaire Holdings: $1,102,150,742
Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX), based in Boston, specializes in developing innovative treatments for serious diseases, with a focus on cystic fibrosis and type 1 diabetes (T1D) and stands fourth on our list of the 10 best diabetes stocks to buy according to billionaires. The company leverages cutting-edge technologies like CRISPR/Cas9 and stem cell therapies to address the root causes of diseases. It generates revenue through its cystic fibrosis drugs, Trikafta and Kalydeco, and is pioneering treatments for T1D, including VX-880, a stem cell-derived therapy aimed at restoring insulin production. Clinical trials have shown promising results, with patients achieving insulin independence, and the company is also developing VX-264, which eliminates the need for immunosuppressive therapies.
The corporation reported strong financial results for Q4 2024, with revenue of $2.91 billion, a 16% increase from the previous year. For the full year, 2024 revenue reached $11.02 billion, reflecting a 12% year-over-year growth. The company’s cystic fibrosis (CF) franchise, particularly the drug TRIKAFTA/KAFTRIO, contributed significantly to this growth, generating $10.24 billion in 2024. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) also ended the year with $11.2 billion in cash and investments, positioning itself for continued success.
In the diabetes treatment space, the company’s pipeline is showing promising progress. Its lead therapy, VX-880, a stem cell-derived treatment for type 1 diabetes (T1D), achieved positive Phase 1/2 trial results. Patients receiving the full dose of VX-880 showed successful islet cell engraftment and glucose-responsive insulin production. Additionally, three patients who followed up for at least 12 months met the primary endpoint of eliminating severe hypoglycemic events with HbA1c levels below 7%. The market for T1D is substantial, with VX-880 targeting 60,000 patients, including brittle diabetics and kidney transplant recipients. The corporation is also developing an encapsulated cell program to expand its reach to the broader T1D population.
Looking ahead, Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is poised for continued growth, supported by recent FDA approvals, including ALYFTREK for CF patients and JOURNAVX for acute pain. These products, along with its robust pipeline, which includes four pivotal development programs, are expected to contribute to a projected 2025 revenue range of $11.75 to $12 billion. The company is also preparing for potential near-term launches of new treatments in CF and acute pain management.
3. Thermo Fisher Scientific Inc. (NYSE:TMO)
Number of Billionaires: 16
Dollar Value of Billionaire Holdings: $3,809,975,968
Thermo Fisher Scientific Inc. (NYSE:TMO) offers a wide range of products and services, including analytical instruments, diagnostics, and life sciences solutions. It stands out for its comprehensive portfolio and customer-centric innovations. In diabetes care, the company provides products like the MAS Diabetes Control line for precise hemoglobin A1c testing. Its PPD clinical research business plays a key role in advancing diabetes treatments.
Thermo Fisher Scientific Inc. (NYSE:TMO) reported strong Q4 2024 results, with revenue of $11.4 billion, a 5% year-over-year increase which was driven by robust performance in the Analytical Instruments segment and overall market strength. This growth was supported by a 7% increase in adjusted operating income and a 50-basis point expansion in operating margin to 23.9%, reflecting improved cost management and profitability. Adjusted EPS grew by 8%, reaching $6.10 for the quarter.
For the full year, Thermo Fisher Scientific Inc. (NYSE:TMO) generated $42.9 billion in revenue and $9.71 billion in adjusted operating income. The company also delivered $7.3 billion in free cash flow and returned $4.6 billion to shareholders through stock buybacks and dividends, signaling confidence in its financial health. Looking ahead to 2025, the corporation expects revenue to reach $43.5 billion to $44 billion, with a 3% to 4% organic growth, and adjusted EPS of $23.10 to $23.50, representing a 6% to 8% growth. The company is also recognized for its role in healthcare innovation, and with its expanding presence in diabetes research, it ranks among the best diabetes stocks attracting investor interest.
2. Eli Lilly and Company (NYSE:LLY)
Number of Billionaires: 23
Dollar Value of Billionaire Holdings: $13,742,938,229
Eli Lilly and Company (NYSE:LLY) is a global leader in pharmaceuticals, specializing in diabetes care. Since introducing the world’s first commercial insulin in 1923, the company has maintained its position at the forefront of diabetes treatment. The company’s diabetes portfolio includes key products like Humalog (insulin lispro), Trulicity (dulaglutide), Mounjaro (tirzepatide), and Zepbound (tirzepatide). These treatments address both type 2 diabetes and obesity.
Eli Lilly and Company (NYSE:LLY)’s Q4 2024 financial results reflect strong growth and innovation across the board. Their full-year revenue rose by 32%, with Q4 revenue jumping 45%, surpassing initial guidance by $4 billion. A major driver of this growth was the success of new products like Mounjaro for diabetes and Zepbound for weight loss, which together contributed over $3.1 billion in Q4 revenue. Mounjaro’s global sales reached $3.5 billion, while Zepbound generated $1.9 billion in the U.S.
The company’s profitability surged as well, with gross margins increasing to 83.2% and operating income more than doubling to $5.6 billion. EPS also saw a significant boost, rising to $5.32 from $2.49 in Q4 2023. Eli Lilly and Company (NYSE:LLY) experienced broad global growth, with notable increases in the U.S. (40%), Europe (82%), Japan (27%), and China (13%). Looking ahead, potential label expansions for Zepbound, including coverage for obstructive sleep apnea and heart failure, could further broaden the drug’s market potential.
1. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Billionaires: 23
Dollar Value of Billionaire Holdings: $8,138,549,322
UnitedHealth Group Incorporated (NYSE:UNH) offers health insurance and services, with a focus on diabetes care and tops the list for being one of the best diabetes stocks. Its Level2 platform provides connected devices and coaching for Type 2 diabetes management, while UnitedHealthcare offers comprehensive care programs. Optum uses data analytics to improve outcomes, and strategic partnerships, like with the Texas Association of Community Health Centers, enhance care. The company’s integrated approach combines insurance, healthcare, and technology to effectively manage diabetes.
UnitedHealth Group Incorporated (NYSE:UNH) reported strong financial results for 2024, with revenue reaching $400.3 billion, an 8% year-over-year increase which was driven by growth in both its UnitedHealthcare and Optum segments. The company also posted adjusted earnings per share (EPS) of $27.66 and operating earnings of $32.3 billion, supported by solid cash flow from operations of $24.2 billion.
The company’s key segment performance showed notable growth, with UnitedHealthcare adding 2.1 million domestic consumers. Optum Health saw a 12% revenue increase, reaching $105.4 billion, and Optum Rx grew by 15% to over $130 billion due to strong client retention and new customer acquisitions. For 2025, the business forecasts revenue of $450–$455 billion, adjusted EPS between $29.50–$30.00, and cash flow approaching $33 billion.
Looking ahead, UnitedHealth Group Incorporated (NYSE:UNH) is focused on expanding value-based care and leveraging technology, like AI, to improve healthcare delivery. The company also plans to pass through 100% of pharmacy benefit manager (PBM) rebates by 2028, demonstrating its commitment to transparency and cost reduction.
Overall, UNH ranks first among the 10 best diabetes stocks to buy according to billionaires. While we acknowledge the potential of healthcare companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than UNH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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