U.S. Markets close in 4 hrs 20 mins
  • S&P 500

    +17.65 (+0.52%)
  • Dow 30

    +149.50 (+0.53%)
  • Nasdaq

    +33.21 (+0.29%)
  • Russell 2000

    +11.44 (+0.71%)
  • Crude Oil

    -0.17 (-0.42%)
  • Gold

    +1.30 (+0.07%)
  • Silver

    +0.19 (+0.76%)

    +0.0054 (+0.4613%)
  • 10-Yr Bond

    +0.0210 (+2.76%)
  • Vix

    -0.01 (-0.03%)

    +0.0017 (+0.1283%)

    +0.1270 (+0.1205%)

    +916.73 (+8.29%)
  • CMC Crypto 200

    +2.15 (+0.90%)
  • FTSE 100

    +11.69 (+0.20%)
  • Nikkei 225

    -104.09 (-0.44%)

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

Zacks Equity Research
·3 mins read

In the latest trading session, DexCom (DXCM) closed at $387.50, marking a -1.6% move from the previous day. This change lagged the S&P 500's daily gain of 0.8%. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, added 0.5%.

DXCM will be looking to display strength as it nears its next earnings release, which is expected to be October 27, 2020. The company is expected to report EPS of $0.64, down 1.54% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $474.08 million, up 19.63% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.67 per share and revenue of $1.86 billion, which would represent changes of +45.11% and +26.23%, respectively, from the prior year.

Any recent changes to analyst estimates for DXCM should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. DXCM is currently a Zacks Rank #3 (Hold).

Looking at its valuation, DXCM is holding a Forward P/E ratio of 147.55. This represents a premium compared to its industry's average Forward P/E of 58.56.

Meanwhile, DXCM's PEG ratio is currently 3.9. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Instruments was holding an average PEG ratio of 4.01 at yesterday's closing price.

The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 179, which puts it in the bottom 30% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming 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
To read this article on Zacks.com click here.