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DexCom (DXCM) Stock Moves -0.88%: What You Should Know

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In the latest trading session, DexCom (DXCM) closed at $293.85, marking a -0.88% move from the previous day. This change was narrower than the S&P 500's daily loss of 2.91%. Meanwhile, the Dow lost 2.73%, and the Nasdaq, a tech-heavy index, lost 0.25%.

Coming into today, shares of the medical device company had lost 4.84% in the past month. In that same time, the Medical sector gained 2.04%, while the S&P 500 gained 0.84%.

Wall Street will be looking for positivity from DexCom as it approaches its next earnings report date. The company is expected to report EPS of $0.72, down 5.26% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $695.8 million, up 16.92% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.28 per share and revenue of $2.92 billion, which would represent changes of +23.31% and +19.18%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for DexCom. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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, the Zacks Consensus EPS estimate remained stagnant. DexCom currently has a Zacks Rank of #3 (Hold).

In terms of valuation, DexCom is currently trading at a Forward P/E ratio of 90.49. This represents a premium compared to its industry's average Forward P/E of 28.79.

We can also see that DXCM currently has a PEG ratio of 2.92. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Medical - Instruments stocks are, on average, holding a PEG ratio of 1.99 based on yesterday's closing prices.

The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 170, which puts it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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