DXCM - 3 Reasons to Buy the Dip With DexCom Stock
When investors are pessimistic about a stock, it's sometimes the optimists that end up coming out ahead. In that vein, DexCom 's (NASDAQ: DXCM) shares aren't performing up to their usual standard this year, with its stock price falling by 36% due to mediocre revenue growth and a regulatory delay.
Still, there's little to suggest that the medical device manufacturer is going to continue to struggle moving forward. For the optimists in the audience, there are even a few signs that things are already looking up. Let's examine three reasons why this stock is still worth buying despite its recent stumbles.
The first reason to buy DexCom stock is that it's slumping as a result of short-term issues that won't have much of an impact once they're resolved. Its latest continuous glucose monitor (CGM) in development for diabetes management, the G7, hit a snag in its approval process with regulators at the Food and Drug Administration (FDA). Apparently, regulators found some minor issues with the device's software package that required the company's attention to remediate, causing a delay. Now, the monitor is slated to launch in Q1 of next year, making it roughly a quarter behind schedule.
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3 Reasons to Buy the Dip With DexCom Stock