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DexCom (DXCM) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, DexCom (DXCM - Free Report) closed at $233.23, marking a +0.77% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.49%. Elsewhere, the Dow gained 0.57%, while the tech-heavy Nasdaq added 0.67%.

Coming into today, shares of the medical device company had gained 7.39% in the past month. In that same time, the Medical sector gained 0.98%, while the S&P 500 gained 3.03%.

Wall Street will be looking for positivity from DXCM as it approaches its next earnings report date. On that day, DXCM is projected to report earnings of $0.71 per share, which would represent year-over-year growth of 31.48%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $427.50 million, up 26.48% from the year-ago period.

Any recent changes to analyst estimates for DXCM should also be noted by investors. 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.

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 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. Within the past 30 days, our consensus EPS projection remained stagnant. DXCM currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that DXCM has a Forward P/E ratio of 134.32 right now. Its industry sports an average Forward P/E of 30.21, so we one might conclude that DXCM is trading at a premium comparatively.

The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 41% of all 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.

To follow DXCM in the coming trading sessions, be sure to utilize

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