DexCom (DXCM) Increases Despite Market Slip: Here's What You Need to Know
The latest trading session saw DexCom (DXCM) ending at $121.35, denoting a +0.46% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a loss of 1.61% for the day. Elsewhere, the Dow lost 0.82%, while the tech-heavy Nasdaq lost 2.23%.
The medical device company's shares have seen a decrease of 1.87% over the last month, not keeping up with the Medical sector's gain of 1.5% and the S&P 500's gain of 3.28%.
The investment community will be paying close attention to the earnings performance of DexCom in its upcoming release. The company is slated to reveal its earnings on February 8, 2024. On that day, DexCom is projected to report earnings of $0.43 per share, which would represent year-over-year growth of 26.47%. Our most recent consensus estimate is calling for quarterly revenue of $1.03 billion, up 26.38% from the year-ago period.
Investors might also notice recent changes to analyst estimates for DexCom. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.74% higher. DexCom presently features a Zacks Rank of #3 (Hold).
In terms of valuation, DexCom is currently trading at a Forward P/E ratio of 70.57. This signifies a premium in comparison to the average Forward P/E of 26.94 for its industry.
One should further note that DXCM currently holds a PEG ratio of 2.36. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Medical - Instruments industry currently had an average PEG ratio of 2.36 as of yesterday's close.
The Medical - Instruments industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 160, placing it within the bottom 37% of over 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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DexCom, Inc. (DXCM) : Free Stock Analysis Report
