Dexcom (DXCM)

Our PAST TOP PICK with DXCM has triggered its stop at $62.  To remain disciplined, we recommend covering the position at this time. 

Our PAST TOP PICK with DXCM is progressing well.  To remain disciplined, we recommend trailing up the stop (from $56) to $62 at this time.  

We reiterate DXCM as a TOP PICK.  The manufacture of continuous glucose monitors sees plenty of growth opportunity ahead for diabetic patients using GLP-1 medicines to monitor blood sugar levels along with those pre-diabetic patients using an over-the-counter monitoring device trying to avoid the disease.  Recently reported earnings showed a 22% growth in revenues and free cash flow has doubled over the last two years to exceed $1 billion.  We recommend trailing up the stop (from $49) to $56, looking to achieve $86 -- upside potential of 22%.  Yield 0%

DXCM is the leading maker of continuous glucose monitoring systems in the US.  With diabetes being the fastest growing health issue, and only 1% of those affected having access to this type of monitoring, they have a long, long runway for growth.  They have developed devices for the larger Type 2 (non-insulin using) group and has been very successful at securing insurance company inclusion.  Recently reported revenue growth exceeded 20% and cash reserves are growing, while the company buys back shares.  It trades at a heady 35x earnings, but the 30% ROE demonstrates its strong market dominance.  We recommend setting a stop-loss at $49, looking to achieve $85 -- upside potential of 32%.  Yield 0%