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Here's Why Investors Should Bet on DexCom (DXCM) Right Now
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DexCom, Inc. (DXCM - Free Report) is currently one of the best-performing stocks in the Medical Instruments industry. Promising agreements with several companies and a strong guidance for 2018 are key drivers for the stock at the moment.
DexCom currently carries a Zacks Rank #2 (Buy).
Impressive Share Price Performance
Over the past year, DexCom’s shares have rallied 98.4% outperforming the industry’s 5% gain. The current level also compares favorably with the S&P 500 index’s 7.4% decline.
What’s Favoring the Stock?
Bullish Outlook
DexCom’s raised 2018 guidance instill investors’ optimism in the stock.
Notably, the company expects revenues of $975 million, up from the previous projection of $925 million.
The lucrative glucose monitoring industry also represents significant commercial opportunity for the company. Going by an article of Research and Markets, the blood glucose monitoring devices market is expected to see a CAGR of 8% by 2024.
Strategic Deals
In a bid to fortify its foothold in the Type 2 diabetes space, DexCom recently announced a new amendment to its license deal with Verily — the life sciences unit of Alphabet (GOOGL - Free Report) . With this deal, DexCom is expected to deliver its next-generation CGM (Continuous Glucose Monitoring) platform by the end of 2020. (read more: DexCom Amends Deal With Verily to Launch Advanced CGM by 2020).
Last year, the company, along with UnitedHealthcare, announced an individualized glucose management pilot program driven by wearable technology to help people with Type 2 diabetes manage their condition in real time.
Which Way Are Estimates Treading?
The Zacks Consensus Estimate for DexCom’s fourth-quarter 2018 earnings is pegged at 13 cents, reflecting a year-over-year increase of 30%. The same for revenues stands at $283.1 million, indicating a 28.1% decline year over year.
For 2018, the Zacks Consensus Estimate is pegged at a loss of 12 cents. The same for revenues stands at $977.4 million.
Buoyed by the solid prospects, the stock has a Growth Score of A. This reflects possibilities of outperformance over the long haul. Our research shows that stocks with a Growth Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 are better picks than most.
Other Key Picks
Other top-ranked stocks in the broader medical space are Veeva Systems Inc. (VEEV - Free Report) and Integer Holdings Corporation (ITGR - Free Report) .
Integer projects earnings growth rate of 31.2% for the fourth quarter. It currently carries a Zacks Rank #1.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Here's Why Investors Should Bet on DexCom (DXCM) Right Now
DexCom, Inc. (DXCM - Free Report) is currently one of the best-performing stocks in the Medical Instruments industry. Promising agreements with several companies and a strong guidance for 2018 are key drivers for the stock at the moment.
DexCom currently carries a Zacks Rank #2 (Buy).
Impressive Share Price Performance
Over the past year, DexCom’s shares have rallied 98.4% outperforming the industry’s 5% gain. The current level also compares favorably with the S&P 500 index’s 7.4% decline.
What’s Favoring the Stock?
Bullish Outlook
DexCom’s raised 2018 guidance instill investors’ optimism in the stock.
Notably, the company expects revenues of $975 million, up from the previous projection of $925 million.
The lucrative glucose monitoring industry also represents significant commercial opportunity for the company. Going by an article of Research and Markets, the blood glucose monitoring devices market is expected to see a CAGR of 8% by 2024.
Strategic Deals
In a bid to fortify its foothold in the Type 2 diabetes space, DexCom recently announced a new amendment to its license deal with Verily — the life sciences unit of Alphabet (GOOGL - Free Report) . With this deal, DexCom is expected to deliver its next-generation CGM (Continuous Glucose Monitoring) platform by the end of 2020. (read more: DexCom Amends Deal With Verily to Launch Advanced CGM by 2020).
Last year, the company, along with UnitedHealthcare, announced an individualized glucose management pilot program driven by wearable technology to help people with Type 2 diabetes manage their condition in real time.
Which Way Are Estimates Treading?
The Zacks Consensus Estimate for DexCom’s fourth-quarter 2018 earnings is pegged at 13 cents, reflecting a year-over-year increase of 30%. The same for revenues stands at $283.1 million, indicating a 28.1% decline year over year.
For 2018, the Zacks Consensus Estimate is pegged at a loss of 12 cents. The same for revenues stands at $977.4 million.
DexCom, Inc. Price and Consensus
DexCom, Inc. Price and Consensus | DexCom, Inc. Quote
Bottom Line
Buoyed by the solid prospects, the stock has a Growth Score of A. This reflects possibilities of outperformance over the long haul. Our research shows that stocks with a Growth Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 are better picks than most.
Other Key Picks
Other top-ranked stocks in the broader medical space are Veeva Systems Inc. (VEEV - Free Report) and Integer Holdings Corporation (ITGR - Free Report) .
Veeva Systems’ long-term earnings growth rate is projected at 19.5%. The stock currently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Integer projects earnings growth rate of 31.2% for the fourth quarter. It currently carries a Zacks Rank #1.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>