2 Unstoppable Health Actions to Buy Right Now for Under $200

The stock market remains one of the best ways to grow capital over time. And while having millions in the bank might help, a more affordable — and perfectly sensible — strategy is to invest relatively small amounts on a regular basis. Even $200 can go a long way, provided it is invested in quality corporations that can provide excellent long-term returns.

There are many such companies in the market. Let’s consider two examples that are worth investing in now: DexCom (NASDAQ: DXCM) and Novartis (NYSE: NVS).

1. DexCom

DexCom is going through a tough time. Following its second-quarter earnings report, the company’s stock fell off a cliff. But even including that decline, DexCom stock has outperformed the market over the past decade:

Mind you, it hasn’t been a smooth ride — the diabetes-focused medical device specialist has undergone several corrections similar to its latest over the past 10 years. But unless DexCom’s long-term outlook has changed, the stock is still worth investing in, especially as it continues to decline.

Management outlined several reasons behind DexCom’s mixed second-quarter results and disappointing third-quarter guidance. First, the pace of new launches for continuous glucose monitoring (CGM) devices is not as fast as hoped.

Second, revenue per customer in the US is down as patients took advantage of discounts on DexCom’s newest CGM, the G7, more than the company expected. The issue of discounts is a short-term one.

The bigger issue for DexCom is whether it can stay competitive with its biggest rival in the field, Abbott Laboratories. Fortunately, these two leaders have only begun to scratch the surface of the global CGM opportunity. As Abbott reported earlier this year, there are half a billion (and counting) adults in the world with diabetes, of whom only 1% now have access to CGM technology.

There are challenges for DexCom in reaching most of these patients. It does not work in many countries with significant numbers of diabetics. Most patients live in developing countries, where most may not be able to afford CGM devices.

However, DexCom has made progress and entered new territories over time. Last year, it made its entry into South America by launching DexCom One in Argentina. DexCom One is, among other things, a cheaper option for price-sensitive customers and regions. The company should continue to develop newer, better, and hopefully more affordable options that will allow it greater access to patients around the world.

The story continues

DexCom’s revenue and earnings have grown significantly over the years. I’d bet DexCom still has years of potential to beat the market. And for $200, you can afford two stocks with spare change.

2. Novartis

Novartis is one of the world’s leading pharmaceutical companies and boasts a wide range of drugs in several therapeutic areas. Unlike the more volatile DexCom, Novartis is a picture of stability, making it an excellent choice for low-risk investors. True, the stock has underperformed the market over the past decade:

However, Novartis recently ushered in a new era after spinning off its generics unit into a standalone company. The generic drug market is a fiercely competitive one where it is difficult to build a competitive advantage because, unlike new therapies, generic drugs do not enjoy patent protection.

Novartis will focus exclusively on new drug development from now on. Some of its newer approvals include Fabhalta, a therapy for paroxysmal nocturnal hemoglobinuria (a rare blood disorder) that won the green light in the US in December. And the company is currently awaiting approval for atrasentan, a potential therapy for a kidney disease called IgA nephropathy.

Novartis’ topline growth rate should improve over the medium term thanks to newer approvals and the fact that it no longer has to deal with its former generics unit. In the second quarter, revenue rose 9% year over year to $12.5 billion. Adjusted earnings per share rose 17% year over year to $1.97.

Novartis is also an excellent dividend stock, having increased its payout for 27 consecutive years, an impressive streak that speaks volumes for its business. Shares are changing hands for just under $112. For $200, you can get a share, with enough change for another quality stock.

Should you invest $1,000 in DexCom right now?

Before buying DexCom stock, consider the following:

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Prosper Junior Bakiny has no position in any of the shares mentioned. The Motley Fool has positions in and recommends Abbott Laboratories. The Motley Fool recommends DexCom. The Motley Fool has a disclosure policy.

2 Unstoppable Health Stocks to Buy Right Now for Under $200 was originally published by The Motley Fool