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DexCom DXCM, a leader in glucose biosensing systems, has announced a strategic partnership with OURA, the developer of a leading smart ring technology. The collaboration is aimed at revolutionizing metabolic health management by integrating DexCom's glucose biosensor data with the biometric insights provided by the Oura Ring. The partnership will enable two-way data flow between DexCom glucose biosensors and apps and Oura Ring and the Oura App, and co-marketing efforts will help OURA and Dexcom reach millions of new users seeking better metabolic health.

The companies will also co-market and cross-sell each other’s products. The first app integration resulting from the partnership is expected to be launched in the first half of 2025.

DexCom is also funding a $75 million strategic investment in OURA’s Series D funding, valuing Oura at over $5 billion.

DexCom’s shares have lost 39.9% in the year-to-date period against 3.9% growth of the industry. The S&P 500 composite has risen 24.5% during the said time frame.

Strategic Goals and Vision

The partnership focuses on delivering a more comprehensive picture of metabolic health. By combining glucose data with information on vital sign, sleep, stress, heart health and activity data collected by the Oura Ring, users can better understand how lifestyle choices impact their glucose levels. This integration promises to help individuals make informed decisions regarding diet, exercise and overall well-being.

DexCom believes that this powerful combination will attract new shared customers who want to better understand the link between activity, sleep, nutrition and glucose levels.

Technological Synergy

Dexcom’s continuous glucose monitoring (CGM) systems, known for their accuracy, have already transformed diabetes management. Their recent product, Stelo, launched in August, is a groundbreaking over-the-counter glucose biosensor, broadening accessibility beyond prescription-only users.

The Oura Ring tracks vital metrics, including sleep quality, activity levels, heart rate and stress. Its recently introduced "Meals" feature allows users to track the timing and impact of their food intake, aligning well with metabolic health goals. With more than 2.5 million units sold, OURA has established itself as a significant player in the wearable health tech market.

The two-way data integration between Dexcom and OURA products will enable users to correlate glucose levels with lifestyle behaviors. It will allow users to analyze how specific foods or activities impact their glucose and adjust their routines accordingly. Personalized insights will ensure the recommendations are tailored to individual responses, recognizing that people react differently to the same foods and activities.

Dexcom’s $75 million investment underscores this collaboration's financial and strategic importance. Oura expects to double its annual sales to $500 million in 2024, showcasing the growing demand for its innovative solutions.

Industry Prospects

Per a report by MarketsandMarkets, the global digital diabetes management market size was valued at approximately $18.9 billion in 2023 and is expected to reach $35.8 billion by 2028 at a growth rate of 13.6%.

The market is being driven by escalating diabetes care solutions and technological developments that have made it possible to introduce highly adaptable solutions. Other significant drivers include the increasing popularity of connected devices and apps as well as the growing adoption of cloud-based solutions.

The partnership addresses a critical health challenge. Almost 88% of Americans are not in optimal metabolic health, increasing their risk of conditions like diabetes and heart disease. By combining Dexcom’s medical-grade biosensors with Oura’s advanced software, this collaboration aims to set a new standard in health monitoring, thereby driving potential for both companies.

DexCom, Inc. Price

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Recent Developments

Last month, DexCom concluded the third quarter of 2024 on a positive note, with earnings and revenues surpassing estimates. Key drivers included significant contributions from the Sensor segment and robust domestic and international revenue growth. The expansion of coverage for CGM systems during the quarter further supported growth, a trend expected to continue throughout 2024. The introduction of sensors like G6 and G7 in international markets also fueled revenue growth.

DXCM’s Zacks Rank & Stocks to Consider

DexCom carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks from the medical industry are Masimo MASI, AngioDynamics ANGO and Globus Medical GMED.

Masimo, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated growth rate of 10.4% for 2025. You can see the complete list of today’s Zacks #1 Rank stocks here.

MASI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 17.10%. Masimo’s shares have risen 37.2% year to date compared with the industry’s 6.7% growth.

AngioDynamics, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 38.2% for 2025. ANGO’s earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 31.71%.

AngioDynamics’ shares have lost 8.9% year to date against the industry’s 6.7% growth.

Globus Medical, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 12.7%. GMED’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.1%. Its shares have risen 56.5% year to date compared with the industry’s 6.7% growth.

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Cencora, Inc. COR witnessed strong momentum in the year-to-date period. Shares of the company have rallied 19.7% against 8.9% decline of the industry. The S&P 500 composite has risen 24.5% during the same time frame.

With healthy fundamentals and strong growth opportunities, this Zacks Rank #2 (Buy) company appears to be a solid wealth creator for its investors at the moment.

Chesterbrook, PA-based Cencora is one of the world’s largest pharmaceutical service companies. It focuses on providing drug distribution and related services to reduce healthcare costs and improve patient outcomes. The company is well-positioned to deliver long-term sustainable growth on the back of its diverse and inclusive teams.

Factors Favoring COR’s Growth

The rally in the company’s share price can be attributed to the robust growth in the company’s U.S. Healthcare Solutions segment. The optimism, led by a solid fourth-quarter fiscal 2024 performance and robust business potential, is expected to contribute further.

Cencora exited the fiscal fourth quarter on a strong note, wherein its earnings and revenues beat the Zacks Consensus Estimate. The company continues to witness a robust segmental performance due to growth in all markets and strong demand for specialty products and GLP-1 drugs. Per management, Cencora delivered a solid performance by playing a crucial role in the healthcare system while maintaining efficiency throughout its business. The company has been focused on its priorities and thoughtful capital deployments to deliver long-term growth.

During its fourth-quarter fiscal 2024 earnings release, COR announced that it has entered a definitive agreement to acquire Retina Consultants of America, a leading management services organization of retina specialists. This acquisition should boost the company’s presence in the retina treatment space.

For fiscal 2025, adjusted earnings per share (EPS) are estimated to be in the range of $14.80-$15.10, indicating growth of 8-10% from the prior-year level. Revenues are projected to rise 7-9%. Revenues at the U.S. Healthcare Solutions segment and the International Healthcare solutions business are estimated to increase 7-9%. Adjusted operating income is expected to improve 5-6.5%.

Cencora is an ideal partner for manufacturers looking to launch their products. This is due to its extensive worldwide distribution network and global platform of commercialization services. Thanks to its growing presence in the pharmaceutical industry, Cencora can establish partnerships with pharmaceutical companies at an early stage of product development and market itself as an integrated partner capable of assisting in the successful commercialization of its products (in addition to providing logistics and distribution services). These factors are likely to have favored the stock’s growth.

Risk Factors

COR’s gross margin continues to be hurt by lower-margin GLP-1 drugs and lack of exclusive COVID-19 therapy sales, which had higher gross profit margins. The company’s rising expenses to support business activities amid inflationary challenges put pressure on the operating margin. Cut-throat competition in the MedTech space is another headwind.

Cencora, Inc. Price

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A Look at Estimates

COR’s earnings per share for fiscal 2025 and 2026 are projected to grow 8.1% and 9.5%, respectively, to $14.88 and $16.209 on a year-over-year basis. The Zacks Consensus Estimate for EPS has risen 0.9% for 2025 and 1.2% for 2026 in the past 30 days.

Revenues for fiscal 2025 and 2026 are anticipated to rise 7.3% and 6.7%, respectively, to $315.26 billion and $336.52 billion on a year-over-year basis.

Key Picks

Some other top-ranked stocks from the medical industry are Masimo MASI, AngioDynamics ANGO and Globus Medical GMED.

Masimo, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated growth rate of 10.4% for 2025. You can see the complete list of today’s Zacks #1 Rank stocks here.

MASI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 17.10%. Masimo’s shares have risen 37.2% year to date compared with the industry’s 6.7% growth.

AngioDynamics, carrying a Zacks Rank #2 at present, has an estimated growth rate of 38.2% for 2025. ANGO’s earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 31.71%.

AngioDynamics’ shares have lost 8.9% year to date against the industry’s 6.7% growth.

GMED’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.1%. Its shares have risen 56.5% year to date compared with the industry’s 6.7% growth.

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McKesson Corporation MCK witnessed strong momentum in the year-to-date period. Shares of the company rallied 34.1% compared with 2.9% growth of the industryin the same period. The S&P 500 Composite has risen 24.5% during the same time frame.

With healthy fundamentals and strong growth opportunities, this Zacks Rank #3 (Hold) company appears to be a solid wealth creator for its investors at the moment.

Headquartered in San Francisco, CA, McKesson is a healthcare services and information technology company with two operating segments — Distribution Solutions and Technology Solutions. The first segment distributes branded and generic pharmaceutical drugs, along with other healthcare-related products, on a global basis. The second segment offers enterprise-wide clinical, patient care, financial, supply chain and strategic management software solutions.

Factors Favoring MCK’s Growth

The rally in MCK’s shares can be attributed to the strength of its robust U.S. Pharmaceutical business. This optimism, led by a solid second-quarter performance and increasing demand for healthcare, is expected to contribute further. However, weak pricing trends are concerning.

Investors seem optimistic regarding the updated earnings guidance. On its second-quarter 2025 earnings call, McKesson raised its adjusted earnings per share (EPS) guidance for fiscal 2025. It now expects adjusted EPS in the range of $32.40-$33.00 (previously expected $31.75-$32.55), which represents growth of 18-20% from the prior-year level. Revenues are expected to grow 15%-17% from the prior-year figure.

The company recorded a significant uptick in its overall top line during the second quarter. This growth was primarily driven by the U.S. Pharmaceutical segment and continued momentum in the Pharmaceutical segment, especially for specialty products and GLP-1 medications. MCK also recorded increased prescription volumes during the quarter.

International segment revenues also witnessed growth year over year. This was due to higher pharmaceutical distribution volumes in the Canadian business. Revenues in the Medical-Surgical Solutions segment were primarily driven by higher volumes of specialty pharmaceuticals, including vaccines in the primary care channel.

Investors also seem to be interested in the company’s recent strategic collaboration. This month, Ontada, a McKesson business, announced a strategic collaboration with Datavant, a health data platform, to include Ontada’s data in their health ecosystem. This collaboration aims to help life science companies quickly access Ontada’s real-world data.

Also, this month, InspiroGene, another MCK business, was selected by Vertex Pharmaceuticals Incorporated to expand commercial distribution options for CASGEVY. The availability of the FDA-approved drug is expected to significantly solidify McKesson’s foothold in the sickle cell disease treatment space.

Factor That May Offset the Gains for MCK

McKesson distributes generic pharmaceuticals, which are subject to price fluctuation. The Distribution Solutions segment had experienced weaker generic pharmaceutical pricing trends, which continue to persist. Continued volatility, unfavorable pricing trends, reimbursement of generic drugs and significant fluctuations in the nature, frequency and magnitude of generic pharmaceutical launches could affect McKesson.

Stocks to Consider

Some better-ranked stocks from the medical industry are Masimo MASI, AngioDynamics ANGO and Globus Medical GMED.

Masimo, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated growth rate of 10.4% for 2025. You can see the complete list of today’s Zacks #1 Rank stocks here.

MASI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 17.10%. Masimo’s shares have risen 37.2% year to date compared with the industry’s 6.7% growth.

AngioDynamics, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 38.2% for 2025. ANGO’s earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 31.71%.

AngioDynamics’ shares have lost 8.9% year to date against the industry’s 6.7% growth.

Globus Medical, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 12.7%. GMED’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.1%. Its shares have risen 56.5% year to date compared with the industry’s 6.7% growth.

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Veeva Systems VEEV recently announced Vault CRM Bot and Vault CRM Voice Control, the two new Generative Artificial Intelligence (GenAI) capabilities in Vault CRM.

The GenAI features were unveiled at the Veeva Commercial Summit Europe. CRM Bot and Voice Control are among the many new innovations that will be introduced to Veeva’s Vault CRM next year. With these new capabilities, companies are likely to deploy AI that will have immediate value by boosting field productivity.

Likely Trend of VEEV Stock Following the News

Following the announcement, shares of the company closed flat at $210.63 at yesterday’s closing. In the year-to-date period, VEEV shares have gained 9.4% compared with the industry’s 28% growth. The S&P 500 increased 24.5% in the same time frame.

Given the growing market prospect for GenAI capabilities in healthcare, VEEV’s latest innovations for its products are likely to boost the company’s business and generate additional revenues. This can further help the stock’s price to rise. Meanwhile, VEEV currently has a market capitalization of $33.9 billion. In the last reported quarter, VEEV delivered an earnings surprise of 5.8%.

More on the VEEV’s GenAI Capabilities for Vault CRM

Veeva's broader plan to assist in enabling AI for the life sciences sector includes integrating AI into its products, such as Voice Control and CRM Bot. Additionally, Veeva offers the Veeva AI Partner Program, which makes it easier for partners and customers to create AI applications that work seamlessly with Vault apps, and the Vault Direct Data API, which offers fast access to data required for AI.

CRM Bot integrates a preferred large language model (LLM) into Vault CRM to facilitate a variety of context-driven tasks, including pre-call preparation, action suggestions, content recommendations, and context-specific learning. CRM Bot is a free add-on to Vault CRM that is likely to be available in late 2025 and requires the Vault Direct Data API.

AI-powered Voice Control is likely to bring the human voice as a user interface into Vault CRM by leveraging Apple Intelligence for the hands-free operation of CRM via spoken commands. Planned for availability in late 2025, Voice Control is included in Vault CRM for no additional charge and requires Apple Intelligence and compatible devices.

Veeva AI Partner Program

The Veeva AI Partner Program provides access to critical technology to help partners develop GenAI solutions that integrate seamlessly with Veeva applications.

The Veeva AI Partner Program includes Vault Direct Data API training and support to build expertise in leveraging Veeva Vault Platform's unique, high-speed API. This new form of API is consistent across huge datasets, transactionally sound, and speeds up application access to Vault data by up to 100 times compared to existing APIs.

The Veeva AI Partner Program also includes a Vault Application Sandbox for developing, testing, and supporting partner applications integrated with Veeva Vault applications.

As part of its targeted plan to enable AI for the life sciences sector, Veeva created the AI Partner Program. Customers and partners may create AI apps that seamlessly interface with Vault applications with more ease thanks to the Vault Direct Data API and AI Partner Program.

Favorable Industry Prospects for VEEV

Per a report by MarketsandMarkets, the global AI in healthcare market size is valued at $20.9 billion in 2024 and is expected to reach $148.4 billion by 2029 at a growth rate of 48.1%.

Growth of AI in the healthcare market is driven by the generation of large and complex healthcare datasets, the pressing need to reduce healthcare costs, improving computing power and declining hardware costs, and the rising number of partnerships among different domains in the healthcare sector.

VEEV’s Zacks Rank & Stocks to Consider

VEEV carries a Zacks Rank #4 (Sell) at present.

Some better-ranked stocks from the medical industry are Masimo MASI, AngioDynamics ANGO and Globus Medical GMED.

Masimo, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated growth rate of 10.4% for 2025. You can see the complete list of today’s Zacks #1 Rank stocks here.

MASI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 17.10%. Masimo’s shares have risen 37.2% year to date compared with the industry’s 6.7% growth.

AngioDynamics, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 38.2% for 2025. ANGO’s earnings surpassed estimates in three of the trailing four quarters and missed once, delivering an average surprise of 31.71%.

AngioDynamics’ shares have lost 8.9% year to date against the industry’s 6.7% growth.

Globus Medical, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 12.7%. GMED’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 12.1%. Its shares have risen 56.5% year to date compared with the industry’s 6.7% growth.

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