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Why DexCom (DXCM) Dipped More Than Broader Market Today
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DexCom (DXCM - Free Report) ended the recent trading session at $122.59, demonstrating a -0.41% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.01%. Elsewhere, the Dow saw an upswing of 0.15%, while the tech-heavy Nasdaq appreciated by 0.36%.
The medical device company's shares have seen an increase of 17.5% over the last month, surpassing the Medical sector's gain of 5.79% and the S&P 500's gain of 5.21%.
Analysts and investors alike will be keeping a close eye on the performance of DexCom in its upcoming earnings disclosure. In that report, analysts expect DexCom to post earnings of $0.43 per share. This would mark year-over-year growth of 26.47%. In the meantime, our current consensus estimate forecasts the revenue to be $1 billion, indicating a 23.26% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.44 per share and a revenue of $3.59 billion, signifying shifts of +65.52% and +23.47%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for DexCom. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.7% higher. DexCom presently features a Zacks Rank of #2 (Buy).
With respect to valuation, DexCom is currently being traded at a Forward P/E ratio of 85.65. Its industry sports an average Forward P/E of 24.28, so one might conclude that DexCom is trading at a premium comparatively.
Meanwhile, DXCM's PEG ratio is currently 2.55. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Medical - Instruments industry currently had an average PEG ratio of 2.69 as of yesterday's close.
The Medical - Instruments industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 74, positioning it in the top 30% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Why DexCom (DXCM) Dipped More Than Broader Market Today
DexCom (DXCM - Free Report) ended the recent trading session at $122.59, demonstrating a -0.41% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.01%. Elsewhere, the Dow saw an upswing of 0.15%, while the tech-heavy Nasdaq appreciated by 0.36%.
The medical device company's shares have seen an increase of 17.5% over the last month, surpassing the Medical sector's gain of 5.79% and the S&P 500's gain of 5.21%.
Analysts and investors alike will be keeping a close eye on the performance of DexCom in its upcoming earnings disclosure. In that report, analysts expect DexCom to post earnings of $0.43 per share. This would mark year-over-year growth of 26.47%. In the meantime, our current consensus estimate forecasts the revenue to be $1 billion, indicating a 23.26% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.44 per share and a revenue of $3.59 billion, signifying shifts of +65.52% and +23.47%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for DexCom. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.7% higher. DexCom presently features a Zacks Rank of #2 (Buy).
With respect to valuation, DexCom is currently being traded at a Forward P/E ratio of 85.65. Its industry sports an average Forward P/E of 24.28, so one might conclude that DexCom is trading at a premium comparatively.
Meanwhile, DXCM's PEG ratio is currently 2.55. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Medical - Instruments industry currently had an average PEG ratio of 2.69 as of yesterday's close.
The Medical - Instruments industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 74, positioning it in the top 30% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.