10 Worst Performing NASDAQ Stocks in 2024

3. DexCom, Inc. (NASDAQ:DXCM)

Year to Date Gain: -44.34%

Number of Hedge Fund Holders: 64

Dexcom is a healthcare company that designs, develops, and commercializes continuous glucose monitoring (CGM) systems. Its products include Dexcom G6 and Dexcom G7, integrated CGM systems for diabetes management.

The stock sank by nearly 40% mid-year after the diabetes management company delivered disappointing second-quarter results and offered weak guidance. While the company posted a 15% increase in revenue to $1 billion, it still missed estimates of $1.04 billion.

In addition to the revenue miss, Dexcom’s projected revenue of between $975 million and $1 billion for the third quarter did not sit well with investors. The situation was exacerbated by a reduction of full-year guidance to between $4 billion and $4.05 billion from a previous guidance of between $4.20 billion and $4.35 billion.

The slow growth has been attributed to fewer new customers and lower revenue per user, which is taking a significant toll on the Dexcom revenue base. Additionally, the company is struggling in the durable medical equipment segment.

While Dexcom is one of the worst-performing stocks in 2024, having lost about 44.34% year to date, its business is not in distress. The fact that the company delivered a 15% increase in revenue in Q2 underscores the fact that there is still growth.

The company’s long-term outlook remains intact, given that it produces and sells continuous glucose monitors (CGMs) that help people with diabetes track their glucose levels. Given the increasing number of people with diabetes worldwide, there will always be a ready market for the company’s products.

In the second quarter of 2024, 64 hedge funds tracked by Insider Monkey held stakes in the stock. Among these, the largest stakeholder was Holocene Advisors, which owned 1.77 million shares valued at approximately $201.05 million.

Here’s what Artisan Partners said about DexCom, Inc. (NASDAQ:DXCM) in its Q2 2024 investor letter:

“Dexcom detracted from performance in the quarter as the stock price gave back all the strong gains from the first quarter of this year. The company reported strong first quarter earnings, beating consensus estimates for the top and bottom lines, highlighted by 25% organic revenue growth. Additionally, it raised the low end of full-year revenue guidance based on the strong start to the year, with record new patient starts. Dexcom is launching an over-the-counter continuous glucose monitoring device set to target the over 25 million Type 2 diabetes patients who are not dependent on insulin. Furthermore, the medical device company recently expanded its salesforce to better address the ~200K primary care physicians in the United States. We see several catalysts going forward, and the stock is trading at a discount to historical valuation metrics.”