DexCom (DXCM - Free Report) closed the most recent trading day at $237.09, moving -1.52% from the previous trading session. This change lagged the S&P 500's daily gain of 0.73%. Meanwhile, the Dow gained 0.51%, and the Nasdaq, a tech-heavy index, added 1.34%.
Heading into today, shares of the medical device company had gained 9.74% over the past month, outpacing the Medical sector's loss of 2.01% and the S&P 500's of 0% in that time.
Wall Street will be looking for positivity from DXCM as it approaches its next earnings report date. This is expected to be February 13, 2020. The company is expected to report EPS of $0.75, up 38.89% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $457 million, up 35.21% from the year-ago period.
It is also important to note the recent changes to analyst estimates for DXCM. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.45% higher within the past month. DXCM currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, DXCM is holding a Forward P/E ratio of 134.87. This valuation marks a premium compared to its industry's average Forward P/E of 29.86.
The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 112, putting it in the top 44% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.