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

Zacks Equity Research

DexCom (DXCM) closed the most recent trading day at $393, moving -1.44% from the previous trading session. This change lagged the S&P 500's 1.9% gain on the day. At the same time, the Dow added 2.05%, and the tech-heavy Nasdaq gained 1.75%.

Wall Street will be looking for positivity from DXCM as it approaches its next earnings report date. On that day, DXCM is projected to report earnings of $0.28 per share, which would represent year-over-year growth of 250%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $405.37 million, up 20.5% from the year-ago period.

DXCM's full-year Zacks Consensus Estimates are calling for earnings of $2.23 per share and revenue of $1.78 billion. These results would represent year-over-year changes of +21.2% and +20.33%, respectively.

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. 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.

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. The Zacks Consensus EPS estimate has moved 0.29% higher within the past month. DXCM is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note DXCM's current valuation metrics, including its Forward P/E ratio of 178.67. This represents a premium compared to its industry's average Forward P/E of 45.16.

The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 127, which puts it in the top 50% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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