12 High Growth Large Cap Stocks to Buy Now

9) DexCom, Inc. (NASDAQ:DXCM)

5-Year Revenue Growth: ~27.9%

Average Upside Potential: ~31.5%

Market cap as of 12 November: $29.01 billion

DexCom, Inc. (NASDAQ:DXCM) is a medical device company, which focuses on the design, development, and commercialization of continuous glucose monitoring (CGM) systems in the US and internationally.

DexCom, Inc. (NASDAQ:DXCM) rolled out Stelo CGM, its first over-the-counter glucose sensor in the US. It targets non-insulin-using Type 2 diabetes and prediabetes patients. Wall Street experts opine that this move should expand its addressable market. This roll-out demonstrates a significant step in DexCom, Inc. (NASDAQ:DXCM)’s product strategy. The move aligns with its goal of expanding the user base beyond traditional insulin-dependent patients. Also, the competitive pricing strategy for Stelo is expected to ramp up adoption, potentially offsetting challenges in other segments of the company’s business.

Moving forward, the company’s strong emphasis on product innovation and healthy position in the CGM market should act as principal growth enablers. Also, it focuses on customer experience and managing for long-term growth. DexCom, Inc. (NASDAQ:DXCM) has advanced its international product portfolio with the launches of Dexcom G7 in Australia and Dexcom ONE+ in France.

For FY 2024, DexCom, Inc. (NASDAQ:DXCM) expects revenue of ~$4.00 – 4.05 billion and non-GAAP gross profit margin of ~63%. It expects adjusted EBITDA margin of ~29%. As of September 30, 2024, the company had $2.49 billion in cash, cash equivalents, and marketable securities and its revolving credit facility remains undrawn. Notably, the cash balance demonstrates significant financial and strategic flexibility as DexCom, Inc. (NASDAQ:DXCM) plans to expand production capacity and explore new market opportunities.

Aristotle Atlantic Partners, LLC, an investment advisor, released its Q3 2024 investor letter. Here is what the fund said:

“DexCom, Inc. (NASDAQ:DXCM)detracted from performance in the third quarter following an uncharacteristic earnings miss, which manifested late in the quarter. The miss was attributed to share loss in the durable medical equipment (DME) channel, reaching a full rebate threshold with insurance companies sooner than expected and a recent salesforce realignment that resulted in slower new patient starts. Management was clear that these are Dexcom specific issues around execution and that they were taking action to remediate those effects. The company stood by their long-range plan which calls for 15%-plus topline growth. We believe Dexcom now trades at a relatively attractive valuation given the strong long-term growth profile.”