For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in DexCom (
DXCM Quick Quote DXCM - Free Report) ten years ago? It may not have been easy to hold on to DXCM for all that time, but if you did, how much would your investment be worth today? DexCom's Business In-Depth
With that in mind, let's take a look at DexCom's main business drivers.
San Diego, CA-based DexCom, Inc. is a medical device company focused on the design, development and commercialization of continuous glucose monitoring systems (CGM). These are for ambulatory use by people with diabetes and by healthcare providers for the treatment of diabetic and non-diabetic patients.
A key element of DexCom’s monitoring system technology is the continuous measure of patient's blood glucose level and transmission of that information to a small cell phone-sized receiver in real time. The company’s monitoring systems aim to provide real-time continuous blood glucose values, trend data and alerts to assist patients in managing their blood glucose levels.
Going by an article of Research and Markets, the blood glucose monitoring devices market is expected to witness a CAGR of over 9% between 2018 and 2024.
2020 at a Glance For the full-year 2020, the company reported adjusted EPS of $3.10, up 68.5% from 2019. Full-year 2020 revenues came in at $1.93 billion, up 30.5% year over year. Sensor & other revenue were $1.56 billion (81% of net revenues). Hardware revenues were $365.3 million (19% of net revenues). Highlights The first quarter of 2021 marked the company’s seventh consecutive quarter of revenue growth of $100 million or more. Moreover, the company witnessed about 40% global unit volume growth in the quarter, thereby indicating sustained customer growth in the business. Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in DexCom a decade ago, you're probably feeling pretty good about your investment today.
A $1000 investment made in August 2011 would be worth $44,306.77, or a 4,330.68% gain, as of August 27, 2021, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
Compare this to the S&P 500's rally of 279.84% and gold's return of -5.52% over the same time frame.
Analysts are anticipating more upside for DXCM.
DexCom exited the second quarter on a strong note, wherein both earnings and revenues beat the Zacks Consensus Estimate. Impressive contribution from the Sensor and other revenue segment, and domestic and international revenue growth were key catalysts. Expansion in both gross and operating margins is a positive. DexCom’s prospects in alternative markets such as the non-intensive diabetes management space are likely to provide it a competitive edge in the MedTech space. Apart from making continued advancements with respect to key strategic objectives, the company ended the quarter with new patient additions as well. Yet, DexCom faces stiff competition in the market for blood & glucose monitoring devices. Reimbursement risk and supply constraints are other headwinds. Over the past one year, DexCom has underperformed the S&P 500.
Over the past four weeks, shares have rallied 13.38%, and there have been 9 higher earnings estimate revisions in the past two months for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.