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DexCom (DXCM) Soars 7.3%: Is Further Upside Left in the Stock?
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DexCom (DXCM - Free Report) shares soared 7.3% in the last trading session to close at $102.14. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 4% gain over the past four weeks.
DexCom recorded a strong price increase after the Centers for Medicare and Medicaid Services (CMS) issued a proposed local coverage determination related to continuous glucose monitoring (CGM) devices last week. The CMS coverage currently applies to patients who take at least three doses of insulin a day. The proposal, which is yet to be finalized, will likely expand CGM use beyond the limited population. This is expected to provide a significant market opportunity to DexCom to serve a wider patient pool. Also, DexCom’s latest announcement of the Dexcom G7 CGM System being now available for diabetics above the age of age two and above in the U.K., Ireland, Germany, Austria and Hong Kong raise optimism about the stock.
This medical device company is expected to post quarterly earnings of $0.24 per share in its upcoming report, which represents a year-over-year change of +9.1%. Revenues are expected to be $751.27 million, up 15.5% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For DexCom, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on DXCM going forward to see if this recent jump can turn into more strength down the road.
DexCom belongs to the Zacks Medical - Instruments industry. Another stock from the same industry, KORU Medical Systems Inc. (KRMD - Free Report) , closed the last trading session 2.7% higher at $2.29. Over the past month, KRMD has returned -10.8%.
For KORU Medical Systems Inc., the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.05. This represents a change of -150% from what the company reported a year ago. KORU Medical Systems Inc. currently has a Zacks Rank of #3 (Hold).
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DexCom (DXCM) Soars 7.3%: Is Further Upside Left in the Stock?
DexCom (DXCM - Free Report) shares soared 7.3% in the last trading session to close at $102.14. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 4% gain over the past four weeks.
DexCom recorded a strong price increase after the Centers for Medicare and Medicaid Services (CMS) issued a proposed local coverage determination related to continuous glucose monitoring (CGM) devices last week. The CMS coverage currently applies to patients who take at least three doses of insulin a day. The proposal, which is yet to be finalized, will likely expand CGM use beyond the limited population. This is expected to provide a significant market opportunity to DexCom to serve a wider patient pool. Also, DexCom’s latest announcement of the Dexcom G7 CGM System being now available for diabetics above the age of age two and above in the U.K., Ireland, Germany, Austria and Hong Kong raise optimism about the stock.
This medical device company is expected to post quarterly earnings of $0.24 per share in its upcoming report, which represents a year-over-year change of +9.1%. Revenues are expected to be $751.27 million, up 15.5% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For DexCom, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on DXCM going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
DexCom belongs to the Zacks Medical - Instruments industry. Another stock from the same industry, KORU Medical Systems Inc. (KRMD - Free Report) , closed the last trading session 2.7% higher at $2.29. Over the past month, KRMD has returned -10.8%.
For KORU Medical Systems Inc., the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.05. This represents a change of -150% from what the company reported a year ago. KORU Medical Systems Inc. currently has a Zacks Rank of #3 (Hold).