DexCom (DXCM) Rises As Market Takes a Dip: Key Facts
The most recent trading session ended with DexCom (DXCM) standing at $122.30, reflecting a +0.46% shift from the previouse trading day's closing. The stock outperformed the S&P 500, which registered a daily loss of 0.12%. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq lost 0.41%.
Shares of the medical device company have appreciated by 0.64% over the course of the past month, underperforming the Medical sector's gain of 3.58% and the S&P 500's gain of 4.83%.
Investors will be eagerly watching for the performance of DexCom in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.27, reflecting a 58.82% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $909.9 million, indicating a 22.71% growth compared to the corresponding quarter of the prior year.
DXCM's full-year Zacks Consensus Estimates are calling for earnings of $1.74 per share and revenue of $4.31 billion. These results would represent year-over-year changes of +14.47% and +18.98%, respectively.
Investors should also note any recent changes to analyst estimates for DexCom. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 1.8% rise in the Zacks Consensus EPS estimate. As of now, DexCom holds a Zacks Rank of #3 (Hold).
From a valuation perspective, DexCom is currently exchanging hands at a Forward P/E ratio of 69.86. This expresses a premium compared to the average Forward P/E of 28.35 of its industry.
Also, we should mention that DXCM has a PEG ratio of 2.11. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Medical - Instruments industry held an average PEG ratio of 2.23.
The Medical - Instruments industry is part of the Medical sector. With its current Zacks Industry Rank of 71, this industry ranks in the top 29% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DexCom, Inc. (DXCM) : Free Stock Analysis Report
