12 Best Internet of Things Stocks To Buy According to Analysts

10. DexCom, Inc. (NASDAQ:DXCM)

Analyst Upside Potential: 12.27%

DexCom, Inc. (NASDAQ:DXCM) is a medical device company that specializes in developing and commercializing continuous glucose monitoring (CGM) systems. These systems help people with diabetes manage their condition by providing real-time glucose level data. Their CGM system can be integrated with various devices like smartphones and insulin pumps via Bluetooth. Moreover, the Dexcom Share system enables caregivers or healthcare providers to remotely monitor a patient’s glucose levels using mobile apps.

On February 14, Travis Steed, an analyst at Bank of America Securities, maintained a Buy rating while keeping his price target of $84.09. DexCom, Inc. (NASDAQ:DXCM) has been growing its customer base. As of the fiscal fourth quarter of 2024, the company had more than 2.8 million customers globally on its G series and D series products, reflecting a significant increase from the previous year. As a result, it reported an 8% year-over-year organic revenue growth in the quarter. For fiscal year 2024, total revenue reached approximately $4.033 billion, marking an 11% increase over the previous year. Management attributed the expansion to being driven by category momentum and improved execution. It is one of the best Internet of Things stocks to buy according to analysts.

Aristotle Atlantic Focus Growth Strategy stated the following regarding DexCom, Inc. (NASDAQ:DXCM) in its Q4 2024 investor letter:

“We sold DexCom, Inc. (NASDAQ:DXCM) after the surprisingly weak second quarter earnings report and only a modest recovery in the third quarter. The U.S. sales trends remain weak, and we believe that it could take a while for Dexcom to regain the premium multiple it has historically enjoyed. Dexcom is working to fix the durable medical equipment (DME) sales channel, and this could take time. The recently announced Stelo product for non-diabetic users could add an additional level of variability to quarterly earnings reports as well.”