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DexCom (DXCM) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research
Crane (CR) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

DexCom (DXCM) closed the most recent trading day at $116.92, moving -0.2% from the previous trading session. This change lagged the S&P 500's 0.46% gain on the day. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq added 0.59%.

Heading into today, shares of the medical device company had lost 18.11% over the past month, lagging the Medical sector's gain of 0.72% and the S&P 500's gain of 3.24% in that time.

DXCM will be looking to display strength as it nears its next earnings release, which is expected to be May 1, 2019. On that day, DXCM is projected to report earnings of -$0.17 per share, which would represent year-over-year growth of 46.88%. Our most recent consensus estimate is calling for quarterly revenue of $246.45 million, up 33.65% from the year-ago period.

DXCM's full-year Zacks Consensus Estimates are calling for earnings of $0.46 per share and revenue of $1.23 billion. These results would represent year-over-year changes of +53.33% and +19.13%, respectively.

It is also important to note the recent changes to analyst estimates for DXCM. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection remained stagnant. DXCM is holding a Zacks Rank of #2 (Buy) right now.

Looking at its valuation, DXCM is holding a Forward P/E ratio of 252.41. This represents a premium compared to its industry's average Forward P/E of 32.11.

The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 109, which puts it in the top 43% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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


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