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DexCom (DXCM) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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DexCom (DXCM - Free Report) ended the recent trading session at $133.04, demonstrating a -1.63% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.11%. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, lost 0.41%.
Heading into today, shares of the medical device company had gained 12.27% over the past month, outpacing the Medical sector's gain of 3.03% and the S&P 500's gain of 2.7% in that time.
The upcoming earnings release of DexCom will be of great interest to investors. The company is predicted to post an EPS of $0.27, indicating a 58.82% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $909.9 million, up 22.71% from the prior-year quarter.
DXCM's full-year Zacks Consensus Estimates are calling for earnings of $1.74 per share and revenue of $4.31 billion. These results would represent year-over-year changes of +14.47% and +18.98%, respectively.
Investors should also note any recent changes to analyst estimates for DexCom. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.8% higher. DexCom currently has a Zacks Rank of #3 (Hold).
With respect to valuation, DexCom is currently being traded at a Forward P/E ratio of 77.62. This represents a premium compared to its industry's average Forward P/E of 28.35.
Also, we should mention that DXCM has a PEG ratio of 2.35. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Medical - Instruments industry stood at 2.35 at the close of the market yesterday.
The Medical - Instruments industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 70, positioning it in the top 28% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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DexCom (DXCM) Sees a More Significant Dip Than Broader Market: Some Facts to Know
DexCom (DXCM - Free Report) ended the recent trading session at $133.04, demonstrating a -1.63% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.11%. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, lost 0.41%.
Heading into today, shares of the medical device company had gained 12.27% over the past month, outpacing the Medical sector's gain of 3.03% and the S&P 500's gain of 2.7% in that time.
The upcoming earnings release of DexCom will be of great interest to investors. The company is predicted to post an EPS of $0.27, indicating a 58.82% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $909.9 million, up 22.71% from the prior-year quarter.
DXCM's full-year Zacks Consensus Estimates are calling for earnings of $1.74 per share and revenue of $4.31 billion. These results would represent year-over-year changes of +14.47% and +18.98%, respectively.
Investors should also note any recent changes to analyst estimates for DexCom. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.8% higher. DexCom currently has a Zacks Rank of #3 (Hold).
With respect to valuation, DexCom is currently being traded at a Forward P/E ratio of 77.62. This represents a premium compared to its industry's average Forward P/E of 28.35.
Also, we should mention that DXCM has a PEG ratio of 2.35. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Medical - Instruments industry stood at 2.35 at the close of the market yesterday.
The Medical - Instruments industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 70, positioning it in the top 28% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.