In the latest trading session, DexCom (DXCM) closed at $420.01, marking a -1.44% move from the previous day. This change lagged the S&P 500's daily loss of 1.23%. At the same time, the Dow lost 1.31%, and the tech-heavy Nasdaq lost 2.29%.
Heading into today, shares of the medical device company had gained 8.08% over the past month, outpacing the Medical sector's gain of 3.6% and the S&P 500's gain of 5.2% in that time.
Wall Street will be looking for positivity from DXCM as it approaches its next earnings report date. This is expected to be July 28, 2020. In that report, analysts expect DXCM to post earnings of $0.28 per share. This would mark year-over-year growth of 250%. Our most recent consensus estimate is calling for quarterly revenue of $406.09 million, up 20.72% from the year-ago period.
DXCM's full-year Zacks Consensus Estimates are calling for earnings of $2.23 per share and revenue of $1.78 billion. These results would represent year-over-year changes of +21.2% and +20.54%, respectively.
It is also important to note the recent changes to analyst estimates for DXCM. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 0.08% lower within the past month. DXCM is currently a Zacks Rank #3 (Hold).
Investors should also note DXCM's current valuation metrics, including its Forward P/E ratio of 191.1. Its industry sports an average Forward P/E of 47.61, so we one might conclude that DXCM is trading at a premium comparatively.
The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 153, which puts it in the bottom 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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