DexCom (DXCM) Stock Declines While Market Improves: Some Information for Investors
In the latest market close, DexCom (DXCM) reached $127.12, with a -1.68% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 0.29%. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq added 0.43%.
Heading into today, shares of the medical device company had gained 5.83% over the past month, outpacing the Medical sector's gain of 2.29% and the S&P 500's gain of 2.08% in that time.
Investors will be eagerly watching for the performance of DexCom in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 8, 2024. The company is expected to report EPS of $0.43, up 26.47% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $1.03 billion, reflecting a 26.42% rise from the equivalent quarter last year.
Investors might also notice recent changes to analyst estimates for DexCom. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
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.
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. The Zacks Consensus EPS estimate has moved 0.49% higher within the past month. DexCom presently features a Zacks Rank of #3 (Hold).
In terms of valuation, DexCom is presently being traded at a Forward P/E ratio of 75.72. For comparison, its industry has an average Forward P/E of 26.43, which means DexCom is trading at a premium to the group.
It's also important to note that DXCM currently trades at a PEG ratio of 2.53. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Medical - Instruments industry held an average PEG ratio of 2.47.
The Medical - Instruments industry is part of the Medical sector. With its current Zacks Industry Rank of 112, this industry ranks in the top 45% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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DexCom, Inc. (DXCM) : Free Stock Analysis Report
