DexCom (DXCM) Gains As Market Dips: What You Should Know
In the latest trading session, DexCom (DXCM) closed at $113.72, marking a +0.49% move from the previous day. This change outpaced the S&P 500's 0.7% loss on the day. Elsewhere, the Dow lost 0.87%, while the tech-heavy Nasdaq added 2.77%.
Heading into today, shares of the medical device company had lost 4.55% over the past month, lagging the Medical sector's loss of 4.27% and outpacing the S&P 500's loss of 5.06% in that time.
DexCom will be looking to display strength as it nears its next earnings release. On that day, DexCom is projected to report earnings of $0.15 per share, which would represent year-over-year growth of 87.5%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $720.74 million, up 14.62% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.06 per share and revenue of $3.46 billion. These totals would mark changes of +21.84% and +18.8%, respectively, from last year.
Any recent changes to analyst estimates for DexCom should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. DexCom is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, DexCom currently has a Forward P/E ratio of 107.12. For comparison, its industry has an average Forward P/E of 24.42, which means DexCom is trading at a premium to the group.
Also, we should mention that DXCM has a PEG ratio of 2.75. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - Instruments was holding an average PEG ratio of 2.02 at yesterday's closing price.
The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 91, putting it in the top 37% 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.
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
