DexCom (DXCM - Free Report) closed the most recent trading day at $235.06, moving -0.33% from the previous trading session. This change lagged the S&P 500's 0.15% loss on the day. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq lost 0.24%.
Heading into today, shares of the medical device company had gained 11.03% over the past month, outpacing the Medical sector's gain of 1.01% and the S&P 500's gain of 3.88% in that time.
DXCM will be looking to display strength as it nears its next earnings release, which is expected to be February 13, 2020. On that day, DXCM is projected to report earnings of $0.71 per share, which would represent year-over-year growth of 31.48%.
It is also important to note the recent changes to analyst estimates for DXCM. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 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 136.87 right now. Its industry sports an average Forward P/E of 29.68, so we one might conclude that DXCM is trading at a premium comparatively.
The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 102, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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 Zacks.com.