Tandem Diabetes Care Stock Forecast: Diabetes remains as the 7th leading cause of death in America. New cases of diabetes have more than tripled each year since the 2010s. According to the CDC, over 79,000 diabetes-related deaths occur each year.
The cost of diabetes treatment takes up a major portion of national healthcare cost. There are also other hidden fees that come with a diabetes diagnosis, such as the impacted productivity at a workplace due to the absence of sufferers and the administrative cost of insurance coverage and claims.
With pressing national demand, it is little wonder that a solution provider of diabetes treatment and products remains healthy in its stock forecast, or does it?
What is Tandem Diabetes Care?
Tandem Diabetes Care [NASDAQ: TNDM] is a public medical care manufacturer that produces and commercializes diabetic treatments. Its flagship product, the t:slim X2, was researched and developed from the accrued feedback and demands from diabetic patients and healthcare providers.
The company was founded in 2006 and its headquarters is situated in San Diego, California. Current company CEO is John F. Sheridan, the former COO of Rapiscan Systems, a manufacturer specialized in X-ray machines.
Its products, such as the t:slim X2 insulin pump, is connected with the Internet of Things (IoT), through integrated cloud-based data management assistance.
Learning and improvement through consumer feedback have become a core tenet of the company, driving its strategy for subsequent products. Customer experiences have proven to be extremely effective in Tandem Diabetes Care business strategies.
Each segment of the business process is conducted in America, from research, to manufacturing and right up to customer services.
On top of its focus on customer trust, the company establishes strong business ties with like-minded companies. It has collaborated with names in the artificial pancreas technology industries, toward enacting genuine changes in healthcare.
Is Tandem Diabetes Care A Buy?
2019 has seen the remarkable record-setting rate for Tandem in improving market share within a single fiscal year.
Tandem Diabetes Care [NASDAQ: TNDM] seems to be moving toward an all-time high on a year-over-year (YoY) forecast and the company doesn’t seem to be slowing down anytime soon.
According to a statement by CEO John Sheridan, the company had shipped more insulin pumps during the first half of 2019 than the whole of 2018.
Sheridan shared that the user-friendliness of manufactured pumps has benefited people who were new to the technology. The focus on customer experience seems to be effective in nationwide diabetic treatment efforts.
Tandem products are compatible with industry devices such as Dexcom G6 glucose monitor, making it suitable for comprehensive healthcare treatments.
Recently, Tandem introduced its system known as Basal-IQ, which is a systemized algorithm that dispenses insulin based on blood sugar readings. The product proved to be a major hit in the market.
Based on stock chart trends over the last 5 years, investors would be forgiven for expecting a further rise in share price over the next quarter as the company wraps up its series of conferences with potential investors from the 4th- 12th of September. Big names scheduled for the webcast sessions include Morgan Stanley & Baird Global Healthcare.
Technically, TNDM has bounced off its 200-day Simple Moving Average in recent weeks.
The company has been known to ramp up performance toward the final quarter of the fiscal year and if the pattern becomes cyclical, this may become a seasonal tradition.
What Are the Risks of Buying Tandem Diabetes Care?
In 2014, Tandem was reported to have issued a voluntary recall of leaky and potentially life-threatening cartridges that affected consumer confidence.
Such hardware flaws can cause significant impact to share prices as demand for product dries up. Any future similar issues could seriously dent investor confidence in the company’s quality control processes.
Although big name competitor Johnson & Johnson made its departure from the field of medical instruments, brands like Insulet may break into the market with their own models of automated insulin solutions to give Tandem a run for its money.
Investors should maintain a sharp eye for market trends and news on the latest innovative developments from rival brands.
Tandem Diabetes Care Stock Forecast
The future looks bright for Tandem Diabetes Care [NASDAQ: TNDM] stock as the company continues to scale its renewable opportunities while planning for the international market.
There have been reports that TDM’s range of t:slim X2 insulin pumps have remained high in demand for daily insulin users and even individuals who have purchased products from competitor brands.
The opportunity abroad looks positive too. Tandem products are expected to be shipped internationally as diabetes increasingly affects people worldwide.
Tandem Diabetes Stock Forecast: Summary
Tandem Diabetes Care [NASDAQ: TNDM] remains a profitable long-term investment stock in Q3.
According to statistics from June 30,2019, the company has held $131.4 million in cash, cash equivalents and short-term investments. This is a noticeable uptick from the second quarter of 2019 and $2.4 million growth compared to December 2018.
As bullish market forces seem to outweigh selling pressure, investors might benefit from holding on to shares as the company anticipates a new wave of investor conferences, which might prove a major game-changer for Q4.
The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.