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.

Parkman Healthcare Partners established a new $20 million position in EyePoint Pharmaceuticals by purchasing 1.088 million shares in Q4 2025. EyePoint shares have surged 93% over the past year as the company advances DURAVYU, a sustained-release therapy for retinal diseases, with Phase 3 trial data expected mid-2026. Despite significant losses and development-stage operations, the company has sufficient cash runway into late 2027.

MIG Capital sold $37.41 million worth of Sotera Health shares (2.26 million shares) in Q4 2025, reducing its stake to 5.88% of AUM. Despite the trim, the fund maintains a significant position in the sterilization and lab testing company. Sotera posted its 20th consecutive year of revenue growth with 5.7% sales increase to $1.16 billion in 2025, while net income nearly doubled to $78 million. The company projects 5-6.5% revenue growth for 2026.

Despite facing recent headwinds, Intuitive Surgical and DexCom are positioned for strong long-term growth. Intuitive Surgical benefits from aging population trends and a wide competitive moat despite new competition from Medtronic's Hugo system. DexCom has significant untapped market potential with millions of uninsured diabetes patients and expanding into non-diabetic markets with products like Stelo.

DexCom is positioned as an under-the-radar beneficiary of the GLP-1 medication boom. Rather than being harmed by GLP-1 drugs, DexCom's continuous glucose monitoring devices are increasingly prescribed alongside GLP-1 medications, with studies showing better patient outcomes when used together. The company has a massive addressable market with over 9 million U.S. patients eligible for reimbursement but not yet using CGM devices, compared to its current 2.5 million global installed base.