Better Buy: DexCom vs. Abbott Laboratories
Healthcare stocks languished during most of 2019 as the markets fretted over political risks associated with the upcoming presidential election. But the sector picked up some steam in the last three months of the year as those worries subsided and investors turned to the sector looking for opportunities that could hold up well if the economy turns down.
DexCom (NASDAQ: DXCM) and Abbott Laboratories (NYSE: ABT) are two very successful healthcare companies that appeal to different sorts of investors. DexCom is a pure play in one of the hottest areas in healthcare, while Abbott Labs is a diversified, steady performer. Which one wins the nod as the better stock to own for the next few years?
DexCom specializes in one type of medical device for people with diabetes, continuous glucose monitors (CGMs), and has been wildly successful in that space. The company's current line of monitors uses a small sensor inserted under the skin and a Bluetooth transmitter that connects to a DexCom receiver, a smartphone, or a smartwatch. The system takes blood glucose measurements every five minutes and alerts the wearer when glucose levels fall outside a safe range.
Source Fool.com
