Shares of medical device major DexCom (NASDAQ:DXCM) are ticking higher today after its Stelo Glucose monitor became the first biosensor device to be cleared for over-the-counter (OTC) use by the U.S. Food and Drug Administration (FDA). Stelo utilizes a wearable sensor. The device can provide insights directly to smart devices such as a user’s phone. The monitor is expected to be available online starting this summer.
According to DexCom, nearly 25 million people in the U.S. who are living with type 2 diabetes but do not use insulin can benefit from the technology. DXCM’s DexCom 7 glucose monitoring device is already available in the market with a prescription. Now, Stelo is expected to further boost access to continuous glucose monitoring solutions.
Is DXCM a Good Stock to Buy?
DexCom’s share price has rallied by nearly 14% over the past six months. Overall, the Street has a Strong Buy consensus rating on DexCom. Further, an average price target of $149 implies a 22.35% potential upside in DXCM stock. However, a price-to-earnings multiple of 92.9 means shares of the company aren’t exactly cheap at current price levels.
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