Medical technology company, Senseonics Holdings, Inc. (SENS) in Germantown, Md., develops and commercializes continuous glucose monitoring (CGM) systems for people with diabetes worldwide. On Feb. 15, 2022, SENS received the FDA's approval for CGM.
However, SENS' net revenue has fallen 46.3% year-over-year to $276,000 for the third quarter, ended Sept. 30, 2021. Also, its gross loss came in at $1.25 million, compared to a gross profit of $835,000 in the year-ago period. Also, analysts expect the company's EPS to remain negative in 2022. In addition, its 63.29x forward EV/S is 1,196.9% higher than the 4.88x industry average. Over the past year, the stock has declined 49% in price to close yesterday's session at $2.12. Thus, the stock looks significantly overvalued at current price levels.
However, we believe popular diabetes stocks with robust financials and sound growth prospects could be ideal investment bets now. With an alarming surge in diabetic patients worldwide, irrespective of age, this sector is projected to remain in the limelight. Indeed, according to Research and Markets, the Diabetes Care Devices Market is expected to grow at a 6.7% CAGR from 2021 - 2028. So, it could be wise to invest in Novo Nordisk A/S (NVO), Eli Lilly and Company (LLY), and Abbott Laboratories (ABT) instead. They have an overall A (Strong Buy) rating in our proprietary POWR Ratings system.
Click here to checkout our Healthcare Sector Report for 2022
Novo Nordisk A/S (NVO)
Headquartered in Bagsvaerd, Denmark, NVO is a healthcare company that researches, develops, manufactures, and markets pharmaceutical products worldwide. It operates in two segments: Diabetes, Obesity care, and Biopharm.
On Dec. 28, 2021, NVO reported its acquisition of Dicerna Pharmaceuticals. This move is expected to boost the company's future business operations.
NVO's net sales increased 11.5% year-over-year to DKK 112.55 billion ($17.2 billion) for the period ended Dec. 31, 2021. Its net profit came in at DKK 47.52 billion ($7.26 billion), up 12.7% year-over-year. And its gross profit was DKK 85.91 billion ($13.13 billion), up 7% year-over-year.
For its Fiscal year 2022, NVO's revenue is expected to grow 12.3% to $24.02 billion. Its EPS is estimated to increase 12.9% to $3.76 in 2023. In addition, it surpassed the consensus EPS estimates in three of the trailing four quarters. Over the past year, the stock has gained 33.7% in price to close yesterday's trading session at $101.36.
NVO's POWR Ratings reflect solid prospects. The company has an overall A rating, which translates to a Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.
It has an A grade for Quality and a B grade for Value and Stability. NVO is ranked #12 of 181 stocks in the Medical - Pharmaceuticals industry. Click here to see the additional POWR Ratings for NVO (Growth, Momentum, and Sentiment).
Eli Lilly and Company (LLY)
Indianapolis, Ind.-based LLY discovers, develops, and markets human pharmaceuticals worldwide. It is a global healthcare leader, uniting caring with discovery, to create medicines that make life better for people worldwide.
On Feb. 11, 2022, LLY announced that FDA issued an Emergency Use Authorization (EUA) for bebtelovimab, an antibody that demonstrates neutralization against the COVID-19 omicron variant. This is a significant enhancement to the company's existing product portfolio.
For its fiscal year 2021 fourth quarter, LLY's revenue increased 7.5% year-over-year to $8 billion. Its non-GAAP net income came in at $2.27 billion, up 7.6% year-over-year, while its non-GAAP EPS was $2.49, up 7.8% year-over-year.
LLY's revenue is expected to be $26.82 billion for 2023, representing an 8% year-over-year rise. In addition, the company's EPS is expected to increase 12.9% year-over-year to $8.58 for 2023. Over the past year, the stock has gained 17.6% in price to close yesterday's trading session at $243.84.
It is no surprise that LLY has an overall A rating, which equates to a Strong Buy in our POWR Rating system. The stock has a B grade for Growth, Stability, Sentiment, and Quality.
LLY is ranked #11 in the Medical - Pharmaceuticals industry. Click here to see the additional POWR Ratings for LLY (Value and Momentum).
Abbott Laboratories (ABT)
ABT in Abbott Park, Ill., discovers, develops, manufactures, and sells health care products worldwide. It operates in four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices.
On Jan. 26, 2022, Robert B. Ford, chairman and CEO, ABT, said, "We achieved more than 40 percent EPS growth, exceeding the baseline EPS guidance we set at the beginning of last year and, importantly, continued to advance our new product pipeline across the portfolio."
ABT's net sales increased 7.2% year-over-year to $11.47 billion in the fourth quarter, ended Dec. 31, 2021. For the 12 months ended Dec. 31, 2021, its net earnings came in at $7.07 billion, up 57.3% year-over-year, while its EPS increased 57.6% year-over-year to $3.94.
Analysts expect ABT's revenue to increase 2.3% year-over-year to $41.82 billion in its fiscal 2023. Its EPS is estimated to grow 6.4% to $5.16 in fiscal 2023. It surpassed the EPS estimates in each of the trailing four quarters. And over the past nine months, the stock has gained 4.8% in price to close yesterday's session at $123.98.
ABT's strong fundamentals are reflected in its POWR Ratings. The stock has an overall A rating, which indicates a Strong Buy in our proprietary rating system.
ABT has an A grade for Sentiment and a B grade for Stability and Quality. Within the Medical - Devices & Equipment industry, it is ranked #3 out of 167 stocks. Click here to see the additional POWR Rating for Growth, Value, and Momentum for ABT.
Click here to checkout our Healthcare Sector Report for 2022
NVO shares were trading at $102.29 per share on Wednesday morning, up $0.93 (+0.92%). Year-to-date, NVO has declined -8.67%, versus a -6.63% rise in the benchmark S&P 500 index during the same period.
About the Author: Riddhima Chakraborty
Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries.
3 Diabetes Stocks That are Better Investments Than Senseonics StockNews.com
