This Stock-Split Stock Is a Better Buy Than GameStop
This month, video game retailer GameStop (NYSE: GME) announced that it will deploy a 4-for-1 stock split. The following day, the popular meme stock jumped more than 15%. While news of the split (to occur July 21) may be exciting for retail investors, this action on its own isn't a reason to buy the stock. It doesn't erase GameStop's losses and it doesn't improve its valuation.
A better investment to consider is DexCom (NASDAQ: DXCM), which makes continuous glucose monitoring devices (CGMs). The company split its shares last month, and unlike GameStop, it is backed by strong fundamentals and a promising future. Rather than jumping on the meme stock bandwagon, investors are better off investing in this top healthcare stock. Here's a closer look at why it's a better buy.
Investors should always consider a company's gross margin. The higher the margin, the better of a position the business is in to post a profit. And as the company grows its top line, more of that incremental revenue will flow through to cover operating expenses and overhead. One of the things I love about DexCom is that it has terrific gross margins:
Source Fool.com
