We recently published a list of Jim Cramer Discussed These 10 NASDAQ 100 Stocks Recently. In this article, we are going to take a look at where DexCom, Inc. (NASDAQ:DXCM) stands against other NASDAQ 100 stocks that Jim Cramer discussed recently.
Jim Cramer, the host of Mad Money, recently shared his perspective on the stock market, especially reflecting on the events of 2024. He emphasized that years like 2024 don’t come around often, where everything feels so clear and the winners are so apparent. According to Cramer, if investors tried to get too creative or overcomplicate their strategies, they likely missed out on the obvious winners.
“If you tried to get creative, you tried to get clever, you missed out on some truly idiot-proof winners. The losers on the other hand, well, they were not as easy to spot because in many cases they were the market’s former winners, even if they long ago lost their way.”
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As part of his annual analysis on Mad Money, Cramer examined the top and bottom performers of the Nasdaq 100 in 2024, offering insights into what worked and what didn’t. He reviewed how, in many instances, investors tend to become frustrated with stocks that are overhyped, knowing deep down that eventually, something better will come along. He likened these overly loved stocks to a “mouse trap,” where the price could only go down from such lofty heights, warning that many investors would regret not jumping off the metaphorical spaceship before the crash.
Cramer shared his thoughts on the five best performers in the NASDAQ 100 for 2024, calling it a “real good collection of winners” and expressing a genuine fondness for these stocks. He also noted that, while the Nasdaq 100 losers may have appeared to have suffered dramatic declines, the reality was more nuanced.
“The Nasdaq 100 losers, though they aren’t so horrible as the declines would make you think, but they got clobbered because they were emblematic of golden calves, worshipped for a long time before being revealed as not so special after all.”
Our Methodology
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episode of Mad Money on January 2. We listed the stocks in ascending order of their hedge fund sentiment as of the third quarter, which was taken from Insider Monkey’s database of 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A doctor demonstrating how to use the medical device to a patient with diabetes.
DexCom, Inc. (NASDAQ:DXCM)
Number of Hedge Fund Holders: 55
Cramer expressed bewilderment with DexCom, Inc.’s (NASDAQ:DXCM) recent earnings miss and commented:
“Fourth for years, Dexcom… This stock’s been hurt and I think a lot of it’s because Abbott’s blood sugar monitoring device may be better even as Dexcom’s device is twice as expensive over the course of a year. Not necessarily better, but more cost-effective. That’s what, by the way, it’s one big reason why we own Abbott for the Charitable Trust. That stock’s very cheap given how great the company is.
Dexcom in the most recent quarter, well, let’s just say it gave you an inline forecast and a disappointing just 2% decline, ooh, a decline in US sales. The numbers from the second half of 2024 shocked people because Dexcom doesn’t miss, and the explanation, some sort of sales reorg, just didn’t cut it. So the stock finished the year down 37%. I’m still mystified by what happened here.”
DexCom (NASDAQ:DXCM) is a healthcare company focused on the design, development, and commercialization of continuous glucose monitoring (CGM) systems to improve diabetes management. While the company has been a key player in this space, its second-quarter results fell short of investor expectations, leading to a drop in its stock price. Additionally, its revenue growth has slowed in the past few quarters due to factors like faster-than-expected rebate use for its G7 CGM, sales team restructuring, and weaker DME performance.
Despite concerns over GLP-1 drugs potentially reducing CGM demand, management remains confident in the continued need for its devices. It is worth noting that the company reported a 12% increase in net income for the third quarter, totaling $134.6 million, and ended with nearly $2.5 billion in cash, cash equivalents, and marketable securities.
In addition to its traditional focus on people with diabetes, DexCom (NASDAQ:DXCM) has been expanding its market by targeting a broader range of patients. In March, the U.S. Food and Drug Administration cleared Stelo, a CGM option designed for individuals who do not use insulin therapy. This includes patients with type 2 diabetes and even those with pre-diabetes.
Furthermore, the company recently introduced a proprietary generative AI platform, which will be integrated into its devices, starting with Stelo. This AI feature aims to assist patients by analyzing data and lifestyle patterns to provide personalized recommendations, helping users make more informed decisions.
Overall, DXCM ranks 3rd on our list of NASDAQ 100 stocks that Jim Cramer discussed recently. While we acknowledge the potential of DXCM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DXCM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
