12 Best Weight Loss Stocks to Buy According to Hedge Funds

7. Dexcom, Inc. (NASDAQ:DXCM)

Number of Hedge Fund Holders: 55 

DexCom, Inc. (NASDAQ:DXCM) is one of the best weight loss stocks to buy according to hedge funds. It designs and develops continuous glucose monitoring (CGM) systems to help people with diabetes manage their blood glucose levels. The company produces products like the Dexcom G6 and G7 CGM systems, Dexcom Share remote monitoring, and related software and mobile apps. Their core products include disposable glucose sensors and reusable hardware such as transmitters and receivers.

In Q3 2024, DexCom, Inc. (NASDAQ:DXCM) reported $994 million in revenue which reflects a 2% increase year-over-year. U.S. revenue was down 2%, while international revenue grew 12%. Gross profit was $625.9 million, slightly down from last year, and operating income was $212 million. The company ended the quarter with $2.5 billion in cash and launched a $750 million share repurchase program.

The launch of Stelo, a glucose monitoring product for individuals with prediabetes or Type 2 diabetes not on insulin, is key to the company’s expansion into the metabolic health market. Stelo has gained positive early feedback, with many customers subscribing to its service. DexCom, Inc. (NASDAQ:DXCM) has expanded Stelo’s distribution through partnerships and B2B sales to clinicians.

The corporation’s international growth continues, with DexCom’s G7 and Dexcom ONE+ reaching new markets like Australia and France, significantly expanding the company’s global reach. DexCom, Inc. (NASDAQ:DXCM) remains a leader in the growing global CGM and metabolic health markets.

Analysts hold a consensus Strong Buy rating on the stock. As of Q3 2024, 55 hedge funds held shares in the company, as tracked by the Insider Monkey database. The largest shareholder in the company was D E Shaw with holdings worth $162.8 million.