Wearables, or electronic devices worn to collect health-related data, are fast becoming a public health priority. U.S. Health and Human Services Secretary Robert F. Kennedy Jr. told Congress that HHS will launch one of the largest advertising campaigns in its history to get wearables and continuous glucose monitors (CGMs) onto every wrist and arm in America.
Stocks of companies that sell these devices have seen a surge following his commentary. Abbott Laboratories (ABT) and DexCom (DXCM), in particular, have benefitted. Both firms were already darlings of Wall Street thanks to consistent double-digit revenue growth. Kennedy’s Make America Healthy Again (MAHA) push now constitutes a significant bull case that, if successful, may pull millions of new users into the wearables ecosystem. In turn, these users would add significantly to the top and bottom lines of Abbott and DexCom.
