5 Best High Growth Healthcare Stocks to Buy

1. DexCom, Inc. (NASDAQ:DXCM)

Number of Hedge Fund Holders: 78

San Diego, California-based DexCom, Inc. (NASDAQ:DXCM) is a medical devices company developing and marketing Continuous Glucose Monitoring (CGM) systems for ambulatory use by people with diabetes and by healthcare providers for the treatment of people with diabetes.

On October 26, DexCom, Inc. (NASDAQ:DXCM) released its financial results for Q3 2023. Its revenue increased by 27% y-o-y to $975 million, while net income increased by 19% y-o-y to $121 million. The company also announced a $500 million share repurchase program.

DexCom, Inc. (NASDAQ:DXCM) ranks 1^st our list of 13 high growth healthcare stocks to buy. The shares of the company were owned by 78 prominent hedge funds as of September 30, with the aggregate shares held by these hedge funds valued at $1.9 billion.

In its Q3 2023 “Baron Health Care Fund” investor letter, Baron Funds, an investment management company, made the following comments about DexCom, Inc. (NASDAQ:DXCM):

“DexCom, Inc. is a leading provider of continuous glucose monitoring technology (CGM) for people with diabetes. The stock declined after Novo Nordisk released SELECT trial results. The trial results have led to investor concerns that Wegovy and medications in the same class (Ozempic, Mounjaro, and other drugs in development) may be broadly reimbursed by payors and widely adopted. This has raised questions about the long-term impact of GLP-1 drugs on the size of DexCom’s addressable market and the terminal value of the stock as these new medications could slow the progression of diabetes for those who are pre-diabetic and reduce the need for insulin for those with Type 2 diabetes. We think GLP-1 drugs will be used in conjunction with CGM technology, which will remain a critical diabetes management tool. We continue to believe DexCom has an attractive long-term growth runway ahead.”

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