DexCom (DXCM) closed the most recent trading day at $394.01, moving -1.73% from the previous trading session. This change lagged the S&P 500's daily loss of 0.66%. At the same time, the Dow lost 0.58%, and the tech-heavy Nasdaq lost 0.8%.
Prior to today's trading, shares of the medical device company had gained 0.75% over the past month. This has lagged the Medical sector's gain of 3.45% and the S&P 500's gain of 5.22% in that time.
DXCM will be looking to display strength as it nears its next earnings release, which is expected to be October 27, 2020. On that day, DXCM is projected to report earnings of $0.64 per share, which would represent a year-over-year decline of 1.54%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $474.08 million, up 19.63% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.67 per share and revenue of $1.86 billion. These totals would mark changes of +45.11% and +26.23%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for DXCM. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. DXCM is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note DXCM's current valuation metrics, including its Forward P/E ratio of 150.22. For comparison, its industry has an average Forward P/E of 58.22, which means DXCM is trading at a premium to the group.
It is also worth noting that DXCM currently has a PEG ratio of 3.97. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Instruments industry currently had an average PEG ratio of 3.94 as of yesterday's close.
The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 167, which puts it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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