The global blood glucose monitoring system market is valued at USD 16.8 billion in 2025 and is projected to reach USD 39.4 billion by 2035, growing at a CAGR of 8.9%. Growth is driven by AI-enabled monitoring systems, increasing diabetes prevalence, and rising adoption of home healthcare solutions. Key players include Medtronic, Abbott, Dexcom, and Roche, with recent partnerships like Abbott-Medtronic collaboration to integrate continuous glucose monitoring with automated insulin delivery systems.

The healthcare sector is rebounding after a lackluster start to 2026, driven by rotation from tech and stabilizing costs. Three stocks are leading the rally: Eli Lilly (up 11% in a month) on strong GLP-1 drug sales and new oral pill approval; Humana (up 18% in a month) as medical utilization moderates and margins widen; and DexCom (up 15% in a month) expanding into non-insulin Type 2 diabetes markets with landmark trial data.

The FDA cleared Dexcom's Stelo Glucose Biosensor System for over-the-counter use in children ages 2 and older who do not use insulin, marking the first OTC continuous glucose monitor authorized for this pediatric population. The device tracks glucose levels every 15 minutes and each sensor lasts up to 15 days. The clearance was based on clinical studies and real-world evidence. Dexcom shares were down 2.2% at the time of publication.

The global non-invasive blood glucose monitoring devices market is projected to grow from USD 34.86 million in 2024 to USD 340.49 million by 2034, with a CAGR of 25.60%. Growth is driven by rising diabetes prevalence, increasing demand for painless monitoring, and technological advancements in wearables and optical sensing. Spectroscopy technology and homecare segments are expected to lead the market, while North America will dominate regionally.

DexCom outlined its 2030 growth strategy, projecting organic revenue growth exceeding 10% annually and targeting adjusted gross profit margins of 67-69%. The company also announced a new $1 billion share repurchase program and agreed with Elliott Investment Management to appoint two new independent directors with MedTech expertise. DexCom beat Q1 earnings expectations with adjusted EPS of 56 cents versus consensus of 47 cents.

Marc Lichtenfeld, Chief Income Strategist at the Oxford Club, identifies three stocks to sell this May: DexCom faces declining growth and competitive pressure from Abbott's FreeStyle Libre; Colgate-Palmolive offers limited upside with flat performance and valuation concerns; Oracle carries significant balance sheet risks with $250 billion in undisclosed lease commitments and projected negative free cash flow. The analysis follows the historical "sell in May and go away" pattern, where S&P 500 averages only 2% gains from May through October versus 7% from November to April.

Despite the traditional 'Sell in May and Go Away' market pattern, 2026 shows strong potential for continued stock gains. With 84% of companies beating earnings expectations and 27% earnings growth, selective investing in fundamentally strong companies could outperform. The article highlights two healthcare stocks—DexCom and ResMed—as well-positioned to deliver significant upside potential despite trading below analyst price targets.

DexCom, a leader in continuous glucose monitoring (CGM) devices, is gaining strong analyst support with 20 Buy ratings versus 4 Sell/Hold ratings and ~40% upside potential. The company beat Q1 2026 earnings expectations with $1.2B in quarterly revenue (up 15% YoY), improved margins, and $2.4B in cash. Key catalysts include the recent G7 15-Day CGM product launch, expansion into non-insulin users via the Stelo line, and manufacturing capacity expansion driving margin improvements.

The global AI in medical imaging market is experiencing rapid growth with a projected $2.20 billion valuation in 2026 and 34.8% CAGR through 2033. Major medtech companies including Danaher, Medtronic, DexCom, and Profound Medical are making strategic acquisitions and expanding AI-powered diagnostic platforms. Hospitals are increasingly prioritizing AI clinical solutions, with 57% ranking them as top technology priorities in 2026-2027, driving demand for validated platforms with real clinical evidence.

The Middle East and Africa CGM market is projected to grow from USD 320.44 million in 2025 to USD 855.30 million by 2034 at an 11.53% CAGR, driven by rising diabetes prevalence, healthcare infrastructure improvements, and digital health integration. Key growth factors include government initiatives promoting preventive care and increasing smartphone adoption for remote monitoring, though high device costs and limited reimbursement remain barriers.

DexCom, a continuous glucose monitoring (CGM) device maker, is positioned to benefit from the growing weight-loss drug market regardless of which pharmaceutical company dominates. As GLP-1 weight-loss drugs gain popularity, they drive increased CGM adoption among patients, expanding DexCom's addressable market. The company has built a competitive moat through network effects and ecosystem integration, making it an attractive alternative to betting on individual drugmakers.

Abbott Laboratories and Dexcom are leading competitors in the continuous glucose monitoring (CGM) market with significant growth potential. Abbott offers a diversified healthcare portfolio with its FreeStyle Libre franchise and recent Exact Sciences acquisition, making it suitable for risk-averse investors seeking dividends. Dexcom, a pure-play CGM company, offers higher growth potential but carries greater risk due to lack of diversification and vulnerability to GLP-1 weight-loss drug competition.