Reasons to Retain TNDM Stock in Your Portfolio for Now

Tandem Diabetes Care, Inc.’s TNDM third-quarter growth is backed by its impressive range of new products. The robust international market expansion provides a favorable opportunity for the company’s growth. However, concerns loom over fierce competition and the adverse impact of macroeconomic challenges.In the past year, this Zacks Rank #3 (Hold) company’s shares have surged 36.2% compared with 16.1% growth of the industry and a 34% rise of the S&P 500 composite.The renowned medical device company has a market capitalization of $1.99 billion. Tandem Diabetes projects a growth rate of 28.6% for 2025 earnings compared with 18.7% for the S&P 500. TNDM delivered a trailing four-quarter average earnings surprise of 8.28%.Let’s delve deeper.TNDM Stock’s Key TailwindsFocus on International Markets: Tandem Diabetes’ decision to expand globally aligns well with market demand and should help it take advantage of the significant market opportunities. The company’s sales in approximately 25 countries outside the United States accounted for 29.6% of its worldwide sales in the third quarter of 2024. Revenues outside the United States increased 31% year over year. The company shipped approximately 11,000 pumps in 25 markets outside the United States. It began scaling Tandem Source outside the country, starting with Canada. The international markets in which it operates are typically less than 20% penetrated, indicating more growth potential.Impressive Product Innovation Continues:  Tandem Diabetes is driving transformative innovation to help reduce the burden and create new possibilities for people with diabetes. Its flagship t:slim X2 insulin pump software became compatible with Dexcom G7 and Dexcom G6 CGM systems in the third quarter of 2024. Following this development, t:slim X2 was approved for sale by Canada Health. In September, t:slim X2 became compatible with Eli Lilly and Company’s Lyumjev. t:slim is also integrated with Abbott’s new FreeStyle Libre 2 Plus sensor. The breakthrough development has enabled t:slim X2 users in the United States to benefit from a hybrid closed-loop system that helps predict and prevent high and low blood sugar levels.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. The company’s extended wear infusion set technology Steadi-Set’s pivotal trial is on track to be completed by the end of 2024. TNDM’s Sigi, ergonomic, rechargeable and detachable patch pumps are under development. Additionally, it is driving innovation in algorithms. The company is planning to roll out its newest algorithm on both h t:slim X2 and Mobi.TNDM Stock’s Key HeadwindsTough Competitive Pressure: 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 publicly traded medical device companies, divisions, or subsidiaries of publicly traded companies, including Insulet and Medtronic. In addition, several companies have been developing and marketing their insulin delivery systems and related software applications. These significant changes within the industry may affect the company’s business and operating results. Image Source: Zacks Investment ResearchMacroeconomic Headwinds Persist: The uncertainties related to the current global economic and political conditions would pose challenges for the company. Due to unfavorable general economic conditions, Tandem Diabetes’ profitability could decline and affect its overall financial performance. In the third quarter, the cost of sales increased 24.5% from the prior-year level. Estimate TrendThe Zacks Consensus Estimate for 2024 loss per share has moved down 4.5% to $1.68 in the past 30 days. The Zacks Consensus Estimate for 2024 revenues is pegged at $912.5 million, which suggests an increase of 22% from the year-ago reported number.Key PicksSome better-ranked stocks in the broader medical space are Haemonetics HAE, Globus Medical GMED and Penumbra PEN.Haemonetics has an earnings yield of 5.02% compared with the industry’s 1.18%. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 19.39%. Its shares have risen 3.6% compared with the industry’s 19.9% growth in the past year.HAE carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Globus Medical, carrying a Zacks Rank #2 at present, has a long-term estimated growth rate of 14.1%. Shares of the company have rallied 81.8% compared with the industry’s 14.5% growth. GMED’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 17.65%.Penumbra, carrying a Zacks Rank #2 at present, has an estimated 2024 earnings growth rate of 33.5% compared with the industry’s 15.9%. Shares of Penumbra have risen 3.2% compared with the industry’s 14.5% growth over the past year. PEN’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 10.54%.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Haemonetics Corporation (HAE): Free Stock Analysis Report Globus Medical, Inc. (GMED): Free Stock Analysis Report Penumbra, Inc. (PEN): Free Stock Analysis Report Tandem Diabetes Care, Inc. (TNDM): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks