What triggered the latest move in Tandem Diabetes Care (TNDM)?

Rosen Law Firm has begun investigating Tandem Diabetes Care (TNDM) after allegations that the company shared misleading business information, tied to a voluntary correction for certain t:slim X2 insulin pumps.

The legal investigation comes after a sharp reset in expectations, with a 1 month share price return of an 11% decline and a 1 year total shareholder return showing a 45.48% loss. However, the 3 month share price return of 33.2% suggests some recent momentum building from a lower base.

If this kind of headline risk has you comparing options in the same space, it could be worth scanning healthcare stocks for other healthcare names catching market attention right now.

With Tandem shares sitting near US$19.90 and trading at roughly a 10% discount to one intrinsic estimate and about 29% below one analyst target, you have to ask: is this a reset bargain, or is the market already pricing in future growth?

Most Popular Narrative: 22.6% Undervalued

Against the last close at $19.90, the most followed narrative pins Tandem Diabetes Care's fair value closer to $25.71, leaving a sizeable valuation gap to interrogate.

Advancements in product pipeline, including the upcoming launches of Steadiset extended wear infusion sets and Tubeless Mobi, reinforce innovation leadership and enable participation in the sustained shift toward automated, user-friendly pump solutions, which will support both topline growth and gross margin expansion.

Curious what kind of revenue profile, margin lift and future earnings multiple are needed to argue for that higher price? The narrative spells out a detailed roadmap of pump adoption, recurring supply sales and profitability targets that sit behind the $25.71 fair value mark.

Result: Fair Value of $25.71 (UNDERVALUED)

However, there are still real pressure points here, including tougher U.S. pump competition and execution risks around pharmacy and international expansion, which could challenge this valuation gap.

Build Your Own Tandem Diabetes Care Narrative

If you see the numbers differently, or prefer to work from your own assumptions, you can build a custom Tandem view in a few minutes by starting with Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Tandem Diabetes Care.

Looking for more investment ideas?

If you stop at a single stock, you could miss other opportunities that better match your goals, risk comfort and time horizon. Widen your search with focused screeners instead.

• Spot early stage opportunities by checking out these 3523 penny stocks with strong financials that already show stronger balance sheets and business quality than many expect from this corner of the market.
• Ride the growing use of automation in healthcare by scanning these 109 healthcare AI stocks that connect medical data, diagnostics and treatment workflows to software driven decision tools.
• Hunt for potential mispricings by reviewing these 871 undervalued stocks based on cash flows where current prices sit below cash flow based estimates from the Simply Wall St models.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.