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DexCom (DXCM) Gains As Market Dips: What You Should Know

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In the latest market close, DexCom (DXCM - Free Report) reached $128.93, with a +0.73% movement compared to the previous day. This move outpaced the S&P 500's daily loss of 0.07%.

The medical device company's stock has climbed by 4.67% in the past month, falling short of the Medical sector's gain of 7.37% and outpacing the S&P 500's gain of 3.98%.

The investment community will be closely monitoring the performance of DexCom in its forthcoming earnings report. The company is scheduled to release its earnings on February 8, 2024. The company is expected to report EPS of $0.43, up 26.47% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.03 billion, up 26.35% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for DexCom. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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, 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. The Zacks Consensus EPS estimate has moved 0.15% lower within the past month. DexCom is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, DexCom is currently trading at a Forward P/E ratio of 75.44. This expresses a premium compared to the average Forward P/E of 27.14 of its industry.

Investors should also note that DXCM has a PEG ratio of 2.25 right now. 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. DXCM's industry had an average PEG ratio of 2.26 as of yesterday's close.

The Medical - Instruments industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 101, placing it within the top 41% of over 250 industries.

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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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