7 Best Diabetes Stocks To Buy Now

3. Tandem Diabetes Care, Inc. (NASDAQ:TNDM)

Analysts’ Upside Potential: 26.80%

The global insulin delivery and diabetes technology provider is Tandem Diabetes Care, Inc. (Nasdaq: TNDM). It has Tandem Mobi and t X2 insulin delivery systems. These pumps are software-updatable via personal computers, have variable infusion set options, and use management-IQ technology for better glycemic management. Tandem’s pumps are compatible with several CGM sensors, offering a complete AID solution for the management of insulin-dependent diabetes.

According to Tandem, the t: slim system now interfaces with three different brands of sensors, a first for the industry. The Mobi system now has better wearability and can function without a smartphone controller. Tandem offers a variety of add-on services and solutions, including decision support, reordering, reporting, and platform connection.

Tandem claims to have over 450k clients across 25 countries in a recent business presentation. This is referred to as a “scaling renewal opportunity” and is based on verified customer satisfaction. More customers equals more renewal opportunities, which adds to the new customers drawn each quarter, creating a “virtuous circle” situation.

Following the release of its impressive second-quarter results and an increase in its full-year sales expectations, Tandem Diabetes Care, Inc. (NASDAQ: TNDM) witnessed a significant 24% spike in its share price.

Analysts had predicted a loss of $0.54 per share for the company’s second quarter of 2024, but the actual loss was $0.47 per share. The quarter’s revenue of $221.9 million is above the consensus estimate of $205.63 million, indicating 13% year-over-year growth. Strong demand for Tandem’s most recent insulin delivery technology, the Tandem Mobi in particular, which has dramatically increased its market share, was the main driver of the company’s excellent financial performance.

While overseas pump shipments decreased 6% to around 10,000 units, Tandem supplied over 20,000 insulin pumps in the U.S. in Q2 2024, a 33% sequential increase from Q1 2024.

Tandem increased its sales estimate for the entire year 2024 to $885-892 million, above the $868.6 million analyst consensus and prior forecasts. In addition, the company expects revenue for the third quarter of $222-225 million, which is higher than the $220.4 million consensus forecast.

TNDM is one of the best diabetes stocks to buy now since it has received a “strong buy” recommendation from 12 analysts. TNDM has an average Wall Street analyst price target of $52.75, indicating an upside potential of 26.80% from the company’s current $41.60 price.