DexCom (DXCM) Outpaced Stock Market Gains: What You Need to Know
DexCom (DXCM) closed the most recent trading day at $118.98 with a gain of +1.51% from the previous trading session. The stock outperformed the S&P 500’s daily gain of 1.3%. Meanwhile, the Dow gained 0.98% and the tech-heavy index Nasdaq gained 7.48%.
As of early today, shares of the medical device company were up 2.13% over the past month. At the same time, the medical sector declined 3.29%, while the S&P 500 declined 2.95%.
Wall Street is looking for positivity from Dexcom as it nears the date of its next earnings report. The company is expected to report EPS of $0.15, up 87.5% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue forecast net sales of $720.74 million, up 14.62% from the year-ago period.
DXCM’s full-year Zacks Consensus Estimates are calling for earnings per share of $1.07 and revenue of $3.46 billion. These results would represent year-over-year changes of +22.99% and +18.82%, respectively.
It’s also important to note recent changes in analyst estimates for DexCom. These revisions help to reflect the ever-changing nature of near-term trading trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly related to near-term stock prices. To benefit from this, we developed Zacks Rank, a proprietary model that takes into account these estimation changes and provides an actionable rating system.
From #1 (strong buy) to #5 (strong sell), the Zacks Rank system has a proven, externally-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Giving The Zacks consensus EPS estimate moved higher by 0.95%. DexCom currently has a Zacks Rank of #3 (Hold).
Given its valuation, DexCom has a forward P/E ratio of 109.92. For comparison, its industry average forward P/E is 24.38, meaning DexCom is trading at a premium to the group.
Investors should also note that DXCM currently has a PEG ratio of 2.82. This popular metric is similar to the widely known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. DXCM’s industry average PEG ratio at yesterday’s close was 2.05.
The medical – device industry is part of the medical sector. The industry currently has a Zacks Industry Rank of 75, placing it in the top 30% of all 250+ industries.
Zacks Industry Rank estimates the strength of our industry groups by measuring the average Zacks Rank of individual stocks within the groups. Our research shows that the top 50% of rated industries outperform the bottom half by a factor of 2 to 1.
To follow DXCM in the coming trading sessions, be sure to peruse Zacks.com.
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