DexCom (DXCM) Gains But Lags Market: What You Should Know
In the latest trading session, DexCom (DXCM) closed at $122.92, marking a +1.39% move from the previous day. This change lagged the S&P 500's 1.62% gain on the day. Elsewhere, the Dow gained 1.17%, while the tech-heavy Nasdaq added 12.91%.
Coming into today, shares of the medical device company had gained 12.23% in the past month. In that same time, the Medical sector lost 3.29%, while the S&P 500 lost 4.54%.
DexCom will be looking to display strength as it nears its next earnings release. In that report, analysts expect DexCom to post earnings of $0.15 per share. This would mark year-over-year growth of 87.5%. Meanwhile, our latest consensus estimate is calling for revenue of $720.74 million, up 14.62% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.06 per share and revenue of $3.46 billion, which would represent changes of +21.84% and +18.75%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for DexCom. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.96% higher. DexCom is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, DexCom is holding a Forward P/E ratio of 114.77. This represents a premium compared to its industry's average Forward P/E of 25.9.
Investors should also note that DXCM has a PEG ratio of 2.94 right now. 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 was holding an average PEG ratio of 2.24 at yesterday's closing price.
The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 37% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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DexCom, Inc. (DXCM) : Free Stock Analysis Report
