Bill Gunderson

When I look at the last four quarters of sales I see reports of 49%, 47%, 53%, and 86% growth and sales. Compare that with Johnson & Johnson, Cisco, or some of the other stocks that have slowed down to single digits. Future growth should be equal to future stock appreciation. There are no guarantees here but your probability of future stock appreciation rises by buying stocks that are growing at a rapid rate.

Data from Best Stocks NowApp

Now let’s discuss future earnings. DXCM actually expects to lose $0.16 cents this year but this gap has been narrowing very rapidly and DXCM continues moving towards profitability. So we can’t put an exact valuation on DXCM. However, we can look to the stock chart to see what kind of anticipation there is for future earnings at the company.

Stock Chart

When I look at the stock chart, I would argue that it is one of the strongest stock charts in the entire market!

And guess what? It’s hitting a new all-time high today!

So with DXCM, my app has taken into account only two of the three components that I require of stocks that I buy, performance and the stock chart, because I cannot tell you exactly how much upside potential the stock has. There are no numbers that we can sink our teeth into compute that. But I think that at some point in the future we will have those numbers. And the existing two components are so powerful at the moment that I have no problem justifying owning this stock right now.

I do not make recommendations, but give examples of what I consider to be the Best Stocks Now. My app is non-political, is not optimistic nor pessimistic, and it also does not read the news. All it does is look at and crunch the numbers then delivers concurrently what the best stocks in the market are at any given time.

Data from Best Stocks NowApp

Right now DXCM is a very good example of a Best Stock Now which is the reason you will find it in my aggressive growth portfolios. One month ago DXCM was #16, three months ago it was #36, and six months ago #43. As you can see it has been in my top 50 for six months and it has also been a big position at my firm during that time. And today, out of 3,751 stocks that I currently track in my database, DXCM comes in at #46!

Data from Best Stocks NowApp

Please follow me on Twitter or at my website for a change in opinion of the stock or for information on my management services.


Bill Gunderson

Bill Gunderson is the CEO and Chief Market Strategist of Gunderson Capital Managment in San Diego, CA. He is also a professional money manager, former research analyst, author of Best Stocks Now. http://www.pwstreet.com