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DexCom (DXCM) Stock Sinks As Market Gains: Here's Why
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DexCom (DXCM - Free Report) closed the most recent trading day at $134.17, moving -0.41% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.57%. On the other hand, the Dow registered a gain of 0.83%, and the technology-centric Nasdaq increased by 0.39%.
Heading into today, shares of the medical device company had gained 15.1% over the past month, outpacing the Medical sector's gain of 0.13% and the S&P 500's gain of 2.97% in that time.
The investment community will be closely monitoring the performance of DexCom in its forthcoming earnings report. On that day, DexCom is projected to report earnings of $0.27 per share, which would represent year-over-year growth of 58.82%. In the meantime, our current consensus estimate forecasts the revenue to be $911.19 million, indicating a 22.88% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.76 per share and a revenue of $4.32 billion, representing changes of +15.79% and +19.21%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1% upward. At present, DexCom boasts a Zacks Rank of #3 (Hold).
In terms of valuation, DexCom is presently being traded at a Forward P/E ratio of 76.54. This expresses a premium compared to the average Forward P/E of 27 of its industry.
Also, we should mention that DXCM has a PEG ratio of 2.31. 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. As the market closed yesterday, the Medical - Instruments industry was having an average PEG ratio of 2.31.
The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 70, putting it in the top 28% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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DexCom (DXCM) Stock Sinks As Market Gains: Here's Why
DexCom (DXCM - Free Report) closed the most recent trading day at $134.17, moving -0.41% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.57%. On the other hand, the Dow registered a gain of 0.83%, and the technology-centric Nasdaq increased by 0.39%.
Heading into today, shares of the medical device company had gained 15.1% over the past month, outpacing the Medical sector's gain of 0.13% and the S&P 500's gain of 2.97% in that time.
The investment community will be closely monitoring the performance of DexCom in its forthcoming earnings report. On that day, DexCom is projected to report earnings of $0.27 per share, which would represent year-over-year growth of 58.82%. In the meantime, our current consensus estimate forecasts the revenue to be $911.19 million, indicating a 22.88% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.76 per share and a revenue of $4.32 billion, representing changes of +15.79% and +19.21%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1% upward. At present, DexCom boasts a Zacks Rank of #3 (Hold).
In terms of valuation, DexCom is presently being traded at a Forward P/E ratio of 76.54. This expresses a premium compared to the average Forward P/E of 27 of its industry.
Also, we should mention that DXCM has a PEG ratio of 2.31. 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. As the market closed yesterday, the Medical - Instruments industry was having an average PEG ratio of 2.31.
The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 70, putting it in the top 28% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.