DexCom (DXCM) Outpaces Stock Market Gains: What You Should Know
DexCom (DXCM) closed the most recent trading day at $124.25, moving +1.88% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.76% for the day. At the same time, the Dow added 0.59%, and the tech-heavy Nasdaq gained 1.12%.
The medical device company's shares have seen a decrease of 1.72% over the last month, not keeping up with the Medical sector's gain of 1.57% and the S&P 500's gain of 2.5%.
The upcoming earnings release of DexCom will be of great interest to investors. The company's earnings report is expected on February 8, 2024. It is anticipated that the company will report an EPS of $0.43, marking a 26.47% rise compared to the same quarter of the previous year. 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. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, there's been a 0.74% rise in the Zacks Consensus EPS estimate. DexCom is currently a Zacks Rank #3 (Hold).
From a valuation perspective, DexCom is currently exchanging hands at a Forward P/E ratio of 71.25. This represents a premium compared to its industry's average Forward P/E of 26.35.
Meanwhile, DXCM's PEG ratio is currently 2.38. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Medical - Instruments stocks are, on average, holding a PEG ratio of 2.4 based on yesterday's closing prices.
The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 151, putting it in the bottom 41% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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
