Opinions The Panic-Proof Portfolio (Stockchase Research)
DexcomDXCMTOP PICKJan 06, 2026
Stock price when the opinion was issued
As of May 28, 2026. Market Open.
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Premium contentPremium contentDXCM 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%
(Analysts’ price target is $85.35)
DXCM has been hit hard as investors fear new success of weight loss drugs will reduce demand for diabetes monitoring products. DXCM is not alone in the decline. But it is still growing, and recent comments by analysts suggest the sell off is quite overdone. It has new products on tap and is strong financially. Market share remains robust. Best Buy has started selling its products (not material on its own, but shows an expanding footprint). We would see DXCM as worth holding. Because it is 33X as large was WELL, they are hard to compare. WELL, being smaller, could potentially rise more, but comes with much more overall risk. From a safety and valuation standpoint, we would, today, prefer DXCM.
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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%
(Analysts’ price target is $86.42)