DexCom (DXCM) closed the most recent trading day at $385.17, moving +1.23% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.53%. Meanwhile, the Dow lost 1.04%, and the Nasdaq, a tech-heavy index, added 0.67%.
Investors will be hoping for strength from DXCM as it approaches its next earnings release. On that day, DXCM is projected to report earnings of $0.28 per share, which would represent year-over-year growth of 250%. Meanwhile, our latest consensus estimate is calling for revenue of $405.37 million, up 20.5% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.22 per share and revenue of $1.77 billion. These totals would mark changes of +20.65% and +20.17%, respectively, from last year.
Any recent changes to analyst estimates for DXCM should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.08% lower. DXCM currently has a Zacks Rank of #3 (Hold).
In terms of valuation, DXCM is currently trading at a Forward P/E ratio of 171.12. For comparison, its industry has an average Forward P/E of 47.14, which means DXCM is trading at a premium to the group.
The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 88, putting it in the top 35% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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