Back to top

Image: Bigstock

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

Read MoreHide Full Article

DexCom (DXCM - Free Report) closed the most recent trading day at $107.14, moving +0.92% from the previous trading session. This change outpaced the S&P 500's 0.34% gain on the day. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, added 8.98%.

Prior to today's trading, shares of the medical device company had lost 12.62% over the past month. This has lagged the Medical sector's loss of 0.28% and the S&P 500's gain of 1% in that time.

DexCom will be looking to display strength as it nears its next earnings release. In that report, analysts expect DexCom to post earnings of $0.26 per share. This would mark year-over-year growth of 52.94%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $811.18 million, up 16.18% from the year-ago period.

Investors should also note any recent changes to analyst estimates for DexCom. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 has moved 0.93% lower within the past month. DexCom currently has a Zacks Rank of #3 (Hold).

In terms of valuation, DexCom is currently trading at a Forward P/E ratio of 100.91. This valuation marks a premium compared to its industry's average Forward P/E of 25.38.

Also, we should mention that DXCM has a PEG ratio of 3.07. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Medical - Instruments stocks are, on average, holding a PEG ratio of 2.23 based on yesterday's closing prices.

The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 141, putting it in the bottom 45% 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.

To follow DXCM in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


DexCom, Inc. (DXCM) - free report >>

Published in