Is This Stock-Split Stock a Buy For 2023? - The Motley Fool

Over the past 10 months, respective high-profile banal splits helped animate an already lively banal market. One of them was that of the aesculapian instrumentality adept DexCom (DXCM -0.81%), which completed a 4-for-1 banal divided successful June.

Of course, banal splits don't fundamentally alteration the prospects of the company, and DexCom's did small to jolt its banal show successful 2022. The company's shares person performed much oregon little connected par with the struggling banal marketplace this year.

Can the healthcare institution rebound successful 2023? Let's look person astatine what DexCom has going connected to find out. 

Rolling retired caller devices

DexCom focuses connected processing continuous glucose monitoring (CGM) devices, which let diabetes patients to support way of their humor sweetener levels continuously. The institution presently generates astir of its wealth from its G6 CGM device, which comes with a sensor, a transmitter, and a touchscreen instrumentality that displays humor glucose levels.

Patients insert the sensor beneath the tegument and drawback the transmitter into the sensor. The sensor lasts for 10 days. While the G6 has been highly palmy for DexCom, 1 of the cardinal highlights for the institution this twelvemonth has been the rollout of a mates of caller CGM options. The archetypal is the G7, the successor of its existent crown jewel. 

The G7 earned clearance successful Europe earlier this year. DexCom precocious started the motorboat of this instrumentality successful respective countries successful the Old Continent. DexCom expects to person the greenish airy for the G7 successful the U.S. by year-end. The institution should initiate the device's motorboat successful the state adjacent year.

DexCom's different caller instrumentality is the DexCom ONE, which it has besides launched successful immoderate parts of Europe, including the U.K. What is the quality betwixt each these options? The G7 is an upgraded mentation of the G6. It has a faster warm-up period, which is the clip it takes aft setup earlier glucose readings are readable connected the accompanying touchscreen device.

The G7 is besides 60% smaller -- making it much discreet -- it has an integrated sensor and transmitter, making it simpler to manage, and astir importantly, it showed superiority successful helping diabetes patients execute amended wellness outcomes than the G6 successful objective trials.

By contrast, the DexCom ONE does not let users to stock information automatically with definite contacts, including erstwhile humor glucose levels autumn beneath a definite threshold. Both the G6 and the G7 person this feature. In exchange, the DexCom ONE is cheaper than the company's different options.

The ample CGM opportunity 

DexCom's newest CGM devices should assistance it marque further headway successful the CGM abstraction adjacent year. In the U.S., a caller regulatory decision could substantially summation the fig of radical eligible for CGM sum successful the country, thereby widening the market. DexCom's rollout of the G7 successful the U.S. -- if it earns clearance arsenic the institution expects -- should beryllium an important portion of the company's maturation strategy successful the U.S. successful 2023. 

DexCom is besides aggressively selling its devices, and it has partnered with immoderate high-profile celebrities to bash so. DexCom's G7, selling efforts, and motorboat of the DexCom ONE should each assistance it summation much adoption some wrong and extracurricular the U.S. As of past year, CGM penetration successful the U.S. diabetes benignant 1 marketplace was astir 30%, leaving plentifulness of country for expansion.

The planetary marketplace besides shows plentifulness of whitespace. And that's earlier we relationship for the information that the percent of radical with diabetes is connected the rise, a inclination that is projected to proceed for decades. Naturally, DexCom isn't the lone institution successful this market. Its astir notable rival is Abbott Laboratories, whose FreeStyle Libre has besides been successful. 

Even so, DexCom has established itself arsenic 1 of the leaders successful CGM, it continues to turn its gross rapidly, and its innovations should let it to enactment connected par with Abbott and immoderate of its different peers successful this industry. In the archetypal 9 months of the year, DexCom's apical enactment jumped by 19.7% twelvemonth implicit twelvemonth to $2.1 billion.

The company's net per stock came successful astatine $0.60 compared to the $0.54 successful the year-ago period. DexCom's momentum successful the CGM abstraction should assistance it present fantabulous returns good beyond adjacent year, making it a apical healthcare stock to bargain heading into the caller year.