In the latest trading session, DexCom (DXCM) closed at $247.64, marking a -1.89% move from the previous day. This move was narrower than the S&P 500's daily loss of 9.51%. Elsewhere, the Dow lost 9.99%, while the tech-heavy Nasdaq lost 9.44%.
Coming into today, shares of the medical device company had gained 2.61% in the past month. In that same time, the Medical sector lost 12.7%, while the S&P 500 lost 18.22%.
DXCM will be looking to display strength as it nears its next earnings release. In that report, analysts expect DXCM to post earnings of $0.11 per share. This would mark year-over-year growth of 320%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $357.53 million, up 27.46% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.25 per share and revenue of $1.78 billion, which would represent changes of +22.28% and +20.32%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for DXCM. 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.
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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 21.08% higher. DXCM currently has a Zacks Rank of #1 (Strong Buy).
Investors should also note DXCM's current valuation metrics, including its Forward P/E ratio of 112.19. This valuation marks a premium compared to its industry's average Forward P/E of 28.62.
Investors should also note that DXCM has a PEG ratio of 3.06 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Instruments industry currently had an average PEG ratio of 2.23 as of yesterday's close.
The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 21% 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.