Abbott vs. DexCom: Which CGM Stock Is the Better Option Right Now?
Zacks analysis suggests DexCom (DXCM) is outperforming Abbott (ABT) due to expanding CGM access, new product launches, and broader coverage, making it the stronger stock to watch now.
In the growing continuous glucose monitoring (CGM) market, two major stocks stand out: Abbott Laboratories (ABT) and DexCom (DXCM). According to Zacks analysis, DexCom currently has the edge over Abbott thanks to expanding device access, new product launches, and broader insurance coverage.
Recommendation Change
No explicit recommendation change was reported, but the analysis indicates DexCom has stronger momentum at present.
Analyst's Rationale
The Zacks analysis focuses on three key factors:
- Expanding Access: DexCom is broadening the reach of its CGM devices to wider patient segments.
- New Product Launches: DexCom has launched innovative products that strengthen its competitive position.
- Broader Coverage: DexCom has secured wider insurance coverage, increasing its potential user base.
Context
While Abbott maintains a strong market presence with products like FreeStyle Libre, DexCom appears more dynamic in expansion and innovation. Recent stock performance reflects this divergence, with DXCM showing greater resilience.
What We Conclude (Neutral)
This does not necessarily mean DexCom is a better investment for everyone. The choice depends on individual investor goals and risk tolerance. Abbott offers more stability and product diversification, while DexCom presents higher growth potential with higher risk.
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