Jim Cramer Wants You to Check These 10 Stocks

3. DexCom Inc. (NASDAQ:DXCM)

Number of Hegde Fund Investors: 64

Jim Cramer recently discussed DexCom Inc. (NASDAQ:DXCM), a company known for its blood sugar monitors for people with diabetes. DexCom Inc. (NASDAQ:DXCM) experienced a dramatic drop in its stock price earlier this year, falling from $111 to $64 in one of the toughest quarters Cramer has seen. Since then, DexCom Inc. (NASDAQ:DXCM) has been slowly recovering, reaching $77.

“One of the most dramatic declines of this year came from Dexcom, an old favorite of ours that we haven’t discussed in a while. It makes blood sugar monitors for people with diabetes. In the last week of July, the stock dropped from $111 to $64 in one of the most brutal quarters I have seen. Since then, Dexcom has been gradually recovering, inching its way back up to $77 last night. Then, bam—Eli Lilly releases a three-year study on its revolutionary GLP-1 drug, revealing it can prevent 94% of at-risk patients from developing type 2 diabetes.

I don’t want to diminish Lilly’s achievement, which will be discussed later, especially since GLP-1s are a big winner for the Chapel Trust. However, these results were in line with previous studies of the drug. Dexcom’s stock was hit hard, falling 6%, as GLP-1s are seen as a threat to the diabetes monitoring business, and today, the market reacted to that.”

In Q2 2024, DexCom Inc. (NASDAQ:DXCM) reported strong financial results, with earnings per share (EPS) of $0.43, surpassing the expected $0.39. While revenue was slightly below forecasts at $1 billion compared to $1.04 billion, DexCom Inc. (NASDAQ:DXCM)’s solid EPS highlights its profitability and growth potential. DexCom Inc. (NASDAQ:DXCM)’s ongoing advancements in continuous glucose monitoring (CGM) technology and its expanding presence in the healthcare market demonstrate its strength in a growing field.

Carillon Eagle Mid Cap Growth Fund stated the following regarding DexCom, Inc. (NASDAQ:DXCM) in its Q2 2024 investor letter:

DexCom, Inc. (NASDAQ:DXCM) is a medical device company that helped pioneer the design and development of continuous glucose monitoring systems (CGMs). They are primarily used by a large fraction of Type 1 diabetics and a meaningfully growing number of Type 2 diabetics to monitor their blood glucose levels. As such, we believe there is a huge greenfield opportunity as many individuals in the addressable market still rely on finger prick tests. Despite beating analysts’ estimates and raising guidance most quarters, the stock has taken a hit as the size of the beats and raises have lately become a bit constrained. Nevertheless, we continue to be supportive of the stock through new product introductions and the integration of its CGMs into tubed and tubeless insulin pump systems.”