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DexCom (DXCM) Stock Falls Amid Market Uptick: What Investors Need to Know

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In the latest trading session, DexCom (DXCM - Free Report) closed at $122.17, marking a -0.51% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.17% for the day. Meanwhile, the Dow lost 0.05%, and the Nasdaq, a tech-heavy index, added 0.2%.

The medical device company's shares have seen an increase of 10.83% over the last month, surpassing the Medical sector's gain of 4.54% and the S&P 500's gain of 4.71%.

Analysts and investors alike will be keeping a close eye on the performance of DexCom in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.43, reflecting a 26.47% increase from the same quarter last year. 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 entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.44 per share and a revenue of $3.59 billion, representing changes of +65.52% and +23.47%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for DexCom. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.7% higher. DexCom currently has a Zacks Rank of #2 (Buy).

Investors should also note DexCom's current valuation metrics, including its Forward P/E ratio of 85.44. This signifies a premium in comparison to the average Forward P/E of 24.85 for its industry.

Meanwhile, DXCM's PEG ratio is currently 2.54. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Instruments was holding an average PEG ratio of 2.58 at yesterday's closing price.

The Medical - Instruments industry is part of the Medical sector. With its current Zacks Industry Rank of 77, this industry ranks in the top 31% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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