Is DexCom's Stock a Buy?
Diabetes is a growing problem in the U.S. and around the world. In the U.S., researchers estimate that nearly 55 million Americans will have either type 1 or type 2 diabetes by 2030. In the U.S., costs related to diabetes, both healthcare and societal, will reach $622 billion, which is a 53% increase from 2015.
That's why buying shares of a company that helps patients with diabetes can make for a sound, long-term investment. One company that has stood out in this area is DexCom (NASDAQ: DXCM). But with the stock having achieved significant gains and up more than 400% in just the past two years, investors may be wondering whether it's still a good buy or whether it has peaked. Let's take a look.
DexCom released its fourth-quarter and full-year results for 2019 on Feb. 13, and it beat analyst expectations for both revenue and earnings. Sales in Q4 were up 37% year over year. And for the full year, its top line increased by 43% from 2018, reaching $1.5 billion in revenue. It was the second straight year where sales grew by at least 40%. But the company expects revenue for 2020 to grow at a slower rate, between 17% and 20%. It also expects its gross margin to remain at around 64%, which is in line with 2019.
Source Fool.com
