4 Reasons Why DexCom Could Be A Good Buy For 2026
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The Alpha Sieve4.74K FollowersFollow5ShareSavePlay(12min)CommentsSummaryDexCom, which has underperformed its medical equipment and S&P 500 peers in a big way in 2025, could be staring at better prospects next year.Stelo is facing vast and underpenetrated prediabetes and type-2 non-insulin markets, with potential international expansion likely in 2026.DXCM's solid FCF margins and cash reserves support a $750M buyback program, with 75% of authorization still available through June 2026.DXCM's 27x earnings multiple is a 50% discount to historical averages, with medium-term earnings growth of 20% p.a. and a current FCF yield that is 4x better than average.The stock is trading closer to the lower boundary of its long-term descending channel and looks like a suitable mean-reversion candidate within the S&P 500 healthcare universe. piyaset/iStock via Getty Images 2025 Proves To Be A Damp Squib DexCom, Inc. (DXCM), a large-cap proxy on the medical equipment market, hasn’t quite managed to deliver the goods for its shareholder base in 2025 so far. Admittedly, the broad medical equipment industry has hardlyThis article was written byThe Alpha Sieve4.74K FollowersFollowInvestment research, primarily oriented towards uncelebrated/under-covered stocks and ETFs, across North America, Latin America, Europe and Asia. Seeks to combine both fundamental and technical disciplines while making an investment/trading proposition.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.