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3 Diabetes Management Stocks in the Spotlight Amid Coronavirus
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The coronavirus pandemic continues to take a toll on the global economy with most medical device companies across various domains having reported huge revenue losses in the first quarter of 2020. Further adding to investors’ woes, most leading companies either slashed or withdrew their full-year guidance with the apprehension of a worse second-quarter performance.
Per a Fitch Ratings report, the world economy is expected to see a 1.9% dip in 2020 with the U.S., eurozone and U.K. GDP slipping 3.3%, 4.2% and 3.9%, respectively.
Needless to say, investors keen on MedTech stocks are currently perturbed by the pandemic-triggered market sell-offs and are opting for a handful few safer havens with mitigated COVID-19-led economic crisis. Diabetes Management is one such sector, which is presently identified as a profitable bet now.
Let us delve deeper:
State of Diabetes Management Amid COVID-19
Despite the widespread manufacturing and supply-chain disruption, the diabetes management sector continues to flourish in the middle of the pandemic chaos on the back of several positive developments.
This can be primarily attributed to a rapid shift in consumer interests toward the adoption of telehealth and remote-monitoring tools amid the pandemic-induced lockdown. Moreover, the insurance industry started financing its customers to use non-traditional digital health services while being confined to their homes. Also, diabetes patients are highly susceptible to contracting the coronavirus. Hence, the digital diabetes treatment options have been witnessing a surge in demand during these challenging times.
Several recent uptrends have been noticed in the industry during the strict imposition of nationwide shutdown and stay-at-home restrictions. Those are as follows:.
In May 2020, Medtronic plc (MDT - Free Report) announced the receipt of the FDA’s approval for the Android version of its Guardian Connect continuous glucose monitoring (CGM) system.
In April, Novo Nordisk A/S ((NVO - Free Report) ) announced that the European Commission granted a marketing authorization to Rybelsus (oral semaglutide) for treating adults with insufficiently-controlled type 2 diabetes to improve glycemic control as an adjunct to diet and exercise.
Insulet Corporation (PODD - Free Report) continues to gain traction from the recent commercial launch of the Omnipod DASH Insulin Management System, which secured the FDA approval last year, only to be designated as an ACE pump. The company has been seeing a significant progress in its Omnipod Horizon clinical development work and the technology is expected to be marketed by early 2021.
Tandem Diabetes Care (TNDM - Free Report) : In March 2020, this Zacks Rank #3 company received the FDA nod for its Basal-IQ technology to be used as an interoperable automated glycemic controller (iAGC). In January, the company commercially launched the t:slim X2 insulin pump with Control-IQ technology within United States. It also plans to roll out t:sport Insulin Delivery System, its next-generation hardware platform, in 2020 or 2021.
In the past three months, shares have outperformed the industry. The stock has gained 38.9% compared with the industry’s 19.1% growth.
Abbott Laboratories (ABT - Free Report) : In April 2020, this Zacks #3 Ranked global major attained Health Canada authorization to use FreeStyle Libre system, the world's leading sensor-based glucose monitoring technology, in hospital settings during the coronavirus outbreak. This enabled frontline COVID-19 healthcare workers to remotely monitor patients' glucose status and glucose history. In February, the company inked a partnership deal with Insulet to integrate its glucose sensing technology with the latter's next-generation tubeless system, the Omnipod Horizon Automated Insulin Delivery (AID) System (Omnipod Horizon System), to offer a customized automated insulin delivery and care for diabetes patients.
In the past six months, shares have outperformed the industry. The stock has gained 1.7% against the industry’s 5.3% decline.
DexCom ((DXCM - Free Report) ): This Zacks Rank of 2 company specializes in the design, development and commercialization of CGM. In June 2020, management announced that the Dexcom G6 CGM System obtained the CE Mark across Europe for providing patients with an option to attach the device to the back of their upper arm, leading to comfortable wearing. In April, the FDA allowed the use of DexCom CGM in the hospital setting and at other healthcare facilities to lend support to COVID-19-related efforts and boosting further demand for the product.
In the past three months, shares have outperformed the industry. The stock has gained 48.6% compared with the industry’s 19.1% growth.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
3 Diabetes Management Stocks in the Spotlight Amid Coronavirus
The coronavirus pandemic continues to take a toll on the global economy with most medical device companies across various domains having reported huge revenue losses in the first quarter of 2020. Further adding to investors’ woes, most leading companies either slashed or withdrew their full-year guidance with the apprehension of a worse second-quarter performance.
Per a Fitch Ratings report, the world economy is expected to see a 1.9% dip in 2020 with the U.S., eurozone and U.K. GDP slipping 3.3%, 4.2% and 3.9%, respectively.
Needless to say, investors keen on MedTech stocks are currently perturbed by the pandemic-triggered market sell-offs and are opting for a handful few safer havens with mitigated COVID-19-led economic crisis. Diabetes Management is one such sector, which is presently identified as a profitable bet now.
Let us delve deeper:
State of Diabetes Management Amid COVID-19
Despite the widespread manufacturing and supply-chain disruption, the diabetes management sector continues to flourish in the middle of the pandemic chaos on the back of several positive developments.
This can be primarily attributed to a rapid shift in consumer interests toward the adoption of telehealth and remote-monitoring tools amid the pandemic-induced lockdown. Moreover, the insurance industry started financing its customers to use non-traditional digital health services while being confined to their homes. Also, diabetes patients are highly susceptible to contracting the coronavirus. Hence, the digital diabetes treatment options have been witnessing a surge in demand during these challenging times.
Several recent uptrends have been noticed in the industry during the strict imposition of nationwide shutdown and stay-at-home restrictions. Those are as follows:.
In May 2020, Medtronic plc (MDT - Free Report) announced the receipt of the FDA’s approval for the Android version of its Guardian Connect continuous glucose monitoring (CGM) system.
In April, Novo Nordisk A/S ((NVO - Free Report) ) announced that the European Commission granted a marketing authorization to Rybelsus (oral semaglutide) for treating adults with insufficiently-controlled type 2 diabetes to improve glycemic control as an adjunct to diet and exercise.
Insulet Corporation (PODD - Free Report) continues to gain traction from the recent commercial launch of the Omnipod DASH Insulin Management System, which secured the FDA approval last year, only to be designated as an ACE pump. The company has been seeing a significant progress in its Omnipod Horizon clinical development work and the technology is expected to be marketed by early 2021.
3 Stocks in Focus
The following are three diabetes management stocks with a Zacks Rank #2 (Buy) and 3 (Hold), all steadily delivering robust performances of late.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Tandem Diabetes Care (TNDM - Free Report) : In March 2020, this Zacks Rank #3 company received the FDA nod for its Basal-IQ technology to be used as an interoperable automated glycemic controller (iAGC). In January, the company commercially launched the t:slim X2 insulin pump with Control-IQ technology within United States. It also plans to roll out t:sport Insulin Delivery System, its next-generation hardware platform, in 2020 or 2021.
In the past three months, shares have outperformed the industry. The stock has gained 38.9% compared with the industry’s 19.1% growth.
Abbott Laboratories (ABT - Free Report) : In April 2020, this Zacks #3 Ranked global major attained Health Canada authorization to use FreeStyle Libre system, the world's leading sensor-based glucose monitoring technology, in hospital settings during the coronavirus outbreak. This enabled frontline COVID-19 healthcare workers to remotely monitor patients' glucose status and glucose history. In February, the company inked a partnership deal with Insulet to integrate its glucose sensing technology with the latter's next-generation tubeless system, the Omnipod Horizon Automated Insulin Delivery (AID) System (Omnipod Horizon System), to offer a customized automated insulin delivery and care for diabetes patients.
In the past six months, shares have outperformed the industry. The stock has gained 1.7% against the industry’s 5.3% decline.
DexCom ((DXCM - Free Report) ): This Zacks Rank of 2 company specializes in the design, development and commercialization of CGM. In June 2020, management announced that the Dexcom G6 CGM System obtained the CE Mark across Europe for providing patients with an option to attach the device to the back of their upper arm, leading to comfortable wearing. In April, the FDA allowed the use of DexCom CGM in the hospital setting and at other healthcare facilities to lend support to COVID-19-related efforts and boosting further demand for the product.
In the past three months, shares have outperformed the industry. The stock has gained 48.6% compared with the industry’s 19.1% growth.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>