In the midst of market volatility, savvy investors are on the lookout for quality businesses trading at a discount. Two growth stocks, in particular, have caught our attention, offering a compelling opportunity to buy into their promising futures at a lower price point.
DexCom, a leader in continuous glucose monitoring (CGM) devices, has seen its shares plummet by approximately 45% since the beginning of 2024. Despite this decline, the company maintains a significant market share in the multibillion-dollar CGM industry, boasts consistent profitability, and has delivered steady revenue growth. The emergence of glucagon-like peptide-1 (GLP-1) agonist drugs has likely contributed to the stock’s volatility, but these medications do not replace the need for CGM devices. In fact, they can complement each other, making DexCom’s products an essential tool for diabetes management.
Recently, DexCom launched Stelo, the first-ever over-the-counter glucose biosensor approved in the U.S. This innovation opens up a vast market of 125 million Americans with type 2 diabetes or prediabetes, offering personalized glucose insights and flexible payment options. With a solid financial foundation, a growing portfolio of CGM devices, and an extensive total addressable market, DexCom’s growth story appears far from over.
Bill Holdings, a financial-automation software provider for small-to-midsize businesses, has seen its stock drop by around 32% since earlier this year. Despite this decline, the company’s business model remains strong, offering a virtual back office solution for daily essential operations. Bill Holdings has reported a 22% year-over-year revenue increase, with a growing customer base of over 474,600 businesses worldwide. The company’s financials are rapidly improving, with a shrinking net loss and increasing free cash flow.
With a total addressable market of over 70 million small businesses and sole proprietors globally, Bill Holdings has a significant growth runway ahead. While economic difficulties may impact spending by smaller enterprises, essential software like payment-management solutions are unlikely to be sacrificed. These green flags make Bill Holdings an attractive option for investors seeking a discounted growth stock.
Both DexCom and Bill Holdings offer a unique opportunity to invest in quality businesses at a lower price point. While market volatility can be unsettling, it’s essential to look beyond short-term fluctuations and focus on the underlying drivers of a company’s performance. By doing so, investors can uncover hidden gems like these two magnificent growth stocks.
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