DexCom (DXCM - Free Report) closed at $235.45 in the latest trading session, marking a +0.65% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.57%. Elsewhere, the Dow lost 1.57%, while the tech-heavy Nasdaq lost 1.89%.
Coming into today, shares of the medical device company had gained 8.65% in the past month. In that same time, the Medical sector lost 1.74%, while the S&P 500 gained 2.35%.
Investors will be hoping for strength from DXCM as it approaches its next earnings release, which is expected to be February 13, 2020. The company is expected to report EPS of $0.72, up 33.33% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $457 million, up 35.21% from the prior-year quarter.
Investors should also note any 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.45% higher within the past month. DXCM is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that DXCM has a Forward P/E ratio of 135.35 right now. This represents a premium compared to its industry's average Forward P/E of 30.26.
The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 162, putting it in the bottom 37% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.