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TNDM Stock Likely to Gain From Innovation Amid Competition
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Tandem Diabetes (TNDM - Free Report) is gaining from continued product innovations. Yet, ongoing macroeconomic challenges and tough competition pose challenges. The stock carries a Zacks Rank #3 (Hold) currently.
Factors Driving TNDM Stock
Tandem Diabetes seeks to grow its business through the acquisition of products or technologies or investments in businesses. Last year, it acquired Swiss-based AMF Medical SA — the developer of the Sigi Patch Pump. The company’s speed-to-market with Continuous Glucose Monitoring (CGM) integrations gives it a competitive advantage as its partners advance and drive the adoption of sensor technology. This is evident from G7 and G6, Dexcom’s CGM systems that Tandem Diabetes has integrated with its pump technology, along with Abbott’s latest CGM innovation.
In addition, the company made a distribution-centric transition in the first half of 2023 to create long-term efficiency for its European operations. This is expected to reduce quarter-to-quarter variability in distributor orders, more normalized average selling prices and closer alignment to pump market demand and end customer supply ordering patterns.
Further, Tandem Diabetes is driving transformative innovation to help reduce the burden and create new possibilities for people living with diabetes. During the second quarter, its flagship t:slim X2 insulin pump software became compatible with Dexcom G7 and earlier with Dexcom G6 CGM systems. Following this development, t:slim X2 was approved for sale by Canada Health. Within the digital health platforms segment, the company began the launch of Tandem Source outside the United States.
The latest addition to the pump platform portfolio, Tandem Mobi, is leading the way in creating a whole new category of devices for insulin therapy. In May 2024, the Tandem Mobi insulin pump with Control-IQ technology completed the integration with both Dexcom G7 and Dexcom G6 CGM Systems. With this, Tandem Diabetes became the only company that offers two insulin pump options that connect with both Dexcom G6 and Dexcom G7, providing more choices in terms of diabetes management. Mobi received an overwhelmingly positive response from its early users and was commercially launched in the United States in February this year.
The stock has gained 50.9% year to date compared with the industry’s 9.8% rise. With the company strategically expanding through innovation, as well as strategic acquisitions, we expect the stock to continue its upward movement in the coming days.
Concerning Factors for TNDM
The uncertainties related to the current global economic and political conditions could be challenging for the company to accurately predict the demand for its products. Many of the jurisdictions in which Tandem Diabetes sells its products have experienced unfavorable general economic conditions, such as a recession or economic slowdown due to political instability and military hostilities in certain geographies and monetary and financial uncertainties in Europe, among others. These conditions could increase the company’s expenses, including unpredictable variability in commodity prices, wage increases and inflation.
Furthermore, consumers may seek to modify spending priorities and reduce discretionary spending under difficult macroeconomic conditions by delaying purchases of the company’s products. These have also disrupted the company’s relationship with suppliers, third-party manufacturers, healthcare providers and distributors. Consequently, this could reduce Tandem Diabetes’ profitability and negatively affect its overall financial performance. In the second quarter, the cost of sales increased by 15.9% from the prior year level.
Tandem Diabetes operates in a highly competitive environment dominated by firms ranging from large multinational corporations with significant resources to start-ups. The company’s primary competitors are major medical device companies that are publicly traded or divisions or subsidiaries of publicly traded companies, including Insulet and Medtronic.
Also, the competitive and regulatory conditions in the markets where the company operates limit the company’s ability to switch to strategies like price increases. In addition, several companies have been developing and marketing their own insulin delivery systems and related software applications, including insulin pumps and Bluetooth-enabled insulin pens, to support MDI therapy. These significant changes within the industry may affect the company’s business and operating results.
Estimates for TransMedics’ 2024 earnings per share (EPS) have moved up 2.5% to $1.23 in the past 30 days. Shares of the company have soared 156.5% in the past year compared with the industry’s 17.5% growth. TMDX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 287.50%. In the last reported quarter, it delivered an earnings surprise of 66.67%.
Estimates for AxoGen’s 2024 loss per share have remained constant at 1 cent in the past 30 days. Shares of the company have surged 165.9% in the past year compared with the industry’s 17.6% growth. AXGN’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 96.5%. In the last reported quarter, it delivered an earnings surprise of 200%
Estimates for OrthoPediatrics’ 2024 loss per share have declined to 92 cents from 96 cents in the past 30 days. In the past year, shares of KIDS have lost 0.8% against the industry’s 18.1% growth. In the last reported quarter, KIDS delivered an earnings surprise of 25.81%. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 26.81%.
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TNDM Stock Likely to Gain From Innovation Amid Competition
Tandem Diabetes (TNDM - Free Report) is gaining from continued product innovations. Yet, ongoing macroeconomic challenges and tough competition pose challenges. The stock carries a Zacks Rank #3 (Hold) currently.
Factors Driving TNDM Stock
Tandem Diabetes seeks to grow its business through the acquisition of products or technologies or investments in businesses. Last year, it acquired Swiss-based AMF Medical SA — the developer of the Sigi Patch Pump. The company’s speed-to-market with Continuous Glucose Monitoring (CGM) integrations gives it a competitive advantage as its partners advance and drive the adoption of sensor technology. This is evident from G7 and G6, Dexcom’s CGM systems that Tandem Diabetes has integrated with its pump technology, along with Abbott’s latest CGM innovation.
In addition, the company made a distribution-centric transition in the first half of 2023 to create long-term efficiency for its European operations. This is expected to reduce quarter-to-quarter variability in distributor orders, more normalized average selling prices and closer alignment to pump market demand and end customer supply ordering patterns.
Further, Tandem Diabetes is driving transformative innovation to help reduce the burden and create new possibilities for people living with diabetes. During the second quarter, its flagship t:slim X2 insulin pump software became compatible with Dexcom G7 and earlier with Dexcom G6 CGM systems. Following this development, t:slim X2 was approved for sale by Canada Health. Within the digital health platforms segment, the company began the launch of Tandem Source outside the United States.
The latest addition to the pump platform portfolio, Tandem Mobi, is leading the way in creating a whole new category of devices for insulin therapy. In May 2024, the Tandem Mobi insulin pump with Control-IQ technology completed the integration with both Dexcom G7 and Dexcom G6 CGM Systems. With this, Tandem Diabetes became the only company that offers two insulin pump options that connect with both Dexcom G6 and Dexcom G7, providing more choices in terms of diabetes management. Mobi received an overwhelmingly positive response from its early users and was commercially launched in the United States in February this year.
Tandem Diabetes Care, Inc. Price
Tandem Diabetes Care, Inc. price | Tandem Diabetes Care, Inc. Quote
The stock has gained 50.9% year to date compared with the industry’s 9.8% rise. With the company strategically expanding through innovation, as well as strategic acquisitions, we expect the stock to continue its upward movement in the coming days.
Concerning Factors for TNDM
The uncertainties related to the current global economic and political conditions could be challenging for the company to accurately predict the demand for its products. Many of the jurisdictions in which Tandem Diabetes sells its products have experienced unfavorable general economic conditions, such as a recession or economic slowdown due to political instability and military hostilities in certain geographies and monetary and financial uncertainties in Europe, among others. These conditions could increase the company’s expenses, including unpredictable variability in commodity prices, wage increases and inflation.
Furthermore, consumers may seek to modify spending priorities and reduce discretionary spending under difficult macroeconomic conditions by delaying purchases of the company’s products. These have also disrupted the company’s relationship with suppliers, third-party manufacturers, healthcare providers and distributors. Consequently, this could reduce Tandem Diabetes’ profitability and negatively affect its overall financial performance. In the second quarter, the cost of sales increased by 15.9% from the prior year level.
Tandem Diabetes operates in a highly competitive environment dominated by firms ranging from large multinational corporations with significant resources to start-ups. The company’s primary competitors are major medical device companies that are publicly traded or divisions or subsidiaries of publicly traded companies, including Insulet and Medtronic.
Also, the competitive and regulatory conditions in the markets where the company operates limit the company’s ability to switch to strategies like price increases. In addition, several companies have been developing and marketing their own insulin delivery systems and related software applications, including insulin pumps and Bluetooth-enabled insulin pens, to support MDI therapy. These significant changes within the industry may affect the company’s business and operating results.
Key Picks
Some better-ranked stocks in the broader medical space are TransMedics Group (TMDX - Free Report) , AxoGen (AXGN - Free Report) and OrthoPediatrics (KIDS - Free Report) . While TransMedics sports a Zacks Rank #1 (Strong Buy) at present, AxoGen and OrthoPediatrics carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Estimates for TransMedics’ 2024 earnings per share (EPS) have moved up 2.5% to $1.23 in the past 30 days. Shares of the company have soared 156.5% in the past year compared with the industry’s 17.5% growth. TMDX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 287.50%. In the last reported quarter, it delivered an earnings surprise of 66.67%.
Estimates for AxoGen’s 2024 loss per share have remained constant at 1 cent in the past 30 days. Shares of the company have surged 165.9% in the past year compared with the industry’s 17.6% growth. AXGN’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 96.5%. In the last reported quarter, it delivered an earnings surprise of 200%
Estimates for OrthoPediatrics’ 2024 loss per share have declined to 92 cents from 96 cents in the past 30 days. In the past year, shares of KIDS have lost 0.8% against the industry’s 18.1% growth. In the last reported quarter, KIDS delivered an earnings surprise of 25.81%. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 26.81%.