Should You Hold DexCom (DXCM) for the Long Term?

Next Century Growth Investors, LLC, an investment Management Company, released its “SMID Cap Growth Strategy” fourth-quarter investor letter. A copy of the same can be downloaded here. October had negative returns from the equity markets in the fourth quarter of 2023, but November and December saw a robust market rally that produced positive returns for the quarter. The strategy returned 4.84% (net of fees) compared to 12.59% for the Russell 2500™ Growth Index. Over the trailing year, the strategy returned 15.46% compared to 18.93% for the index. In addition, please check the fund’s top five holdings to know its best picks in 2023.

NCG SMID Cap Growth Strategy featured stocks like DexCom, Inc. (NASDAQ:DXCM) in its Q4 2023 investor letter. Headquartered in San Diego, California, DexCom, Inc. (NASDAQ:DXCM) is a medical device company. On March 19, 2024, DexCom, Inc. (NASDAQ:DXCM) stock closed at $134.17 per share. One-month return of DexCom, Inc. (NASDAQ:DXCM) was 15.28%, and its shares gained 16.67% of their value over the last 52 weeks. DexCom, Inc. (NASDAQ:DXCM) has a market capitalization of $51.725 billion.

NCG SMID Cap Growth Strategy stated the following regarding DexCom, Inc. (NASDAQ:DXCM) in its fourth quarter 2023 investor letter:

“DexCom, Inc. (NASDAQ:DXCM) has the leading CGM (continuous glucose monitoring) system in diabetes care. CGM has been taking share from intermittent fingerstick monitoring since its introduction. Over the years, DXCM has enhanced accuracy and functionality of the system, expanded accessible patient populations through new indications, created partnerships with leading insulin pump companies, improved reimbursement coverage, and they continue to grow in new geographies. As these pieces have fallen into place, DXCM has delivered strong revenue growth with increasing levels of profitability, and we believe it can continue into the future.”

A doctor demonstrating how to use the medical device to a patient with diabetes.

DexCom, Inc. (NASDAQ:DXCM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, DexCom, Inc. (NASDAQ:DXCM) was held by 69 hedge fund portfolios, down from 78 in the previous quarter, according to our database.

We discussed DexCom, Inc. (NASDAQ:DXCM) in another article and shared Artisan Mid Cap Fund’s views on the company. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.