In the latest trading session, DexCom (DXCM - Free Report) closed at $209.50, marking a +1.58% move from the previous day. This move outpaced the S&P 500's daily loss of 4.34%. Elsewhere, the Dow lost 4.55%, while the tech-heavy Nasdaq lost 3.79%.
Prior to today's trading, shares of the medical device company had lost 31.82% over the past month. This has lagged the Medical sector's loss of 22.08% and the S&P 500's loss of 28.78% in that time.
DXCM will be looking to display strength as it nears its next earnings release. On that day, DXCM is projected to report earnings of $0.11 per share, which would represent 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 should also note any recent changes to analyst estimates for DXCM. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.05% higher. DXCM is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note DXCM's current valuation metrics, including its Forward P/E ratio of 91.66. For comparison, its industry has an average Forward P/E of 23.87, which means DXCM is trading at a premium to the group.
Meanwhile, DXCM's PEG ratio is currently 2.5. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Medical - Instruments stocks are, on average, holding a PEG ratio of 2.01 based on yesterday's closing prices.
The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 50, which puts it in the top 20% 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.