1 Reason to Sell DexCom Stock, and 1 Reason to Buy
Shares of the medical-device maker (NASDAQ: DXCM) are down by 37% this year. The diabetes-focused healthcare company disappointed investors with its second-quarter results, leading to a massive drop in its stock price overnight. Though the issues DexCom has faced this year can mainly be classified as "short-term headwinds" -- including rebate-related issues -- there are more serious problems for the company's long-term prospects.
On the other hand, DexCom has attractive opportunities that could allow it to deliver market-beating returns to patient investors. Is the bull case stronger than the bear one? Let's consider one argument against investing in DexCom and one in favor.
DexCom develops continuous glucose monitoring (CGM) systems to help people with diabetes track their blood glucose levels. This technology improves patients' health outcomes. That's why DexCom has been successful, at least so far. The increased adoption of CGM has led to growing revenue and earnings:
Source Fool.com
Dexcom Inc. Stock
The stock is an absolute favorite of our community with 30 Buy predictions and no Sell predictions.
With a target price of 89 € there is a positive potential of 23.65% for Dexcom Inc. compared to the current price of 71.98 €.
