Yahoo Finance DexCom (DXCM) Gains As Market Dips: What You Should Know
DexCom (DXCM) closed at $75.45 in the latest trading session, marking a +1% move from the prior day. This change outpaced the S&P 500's 0.07% loss on the day. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 0.02%.
Coming into today, shares of the medical device company had gained 0.29% in the past month. In that same time, the Medical sector lost 5.47%, while the S&P 500 lost 7.99%.
Investors will be hoping for strength from DexCom as it approaches its next earnings release. The company is expected to report EPS of $0.16, down 15.79% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $695.8 million, up 16.92% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.74 per share and revenue of $2.92 billion. These totals would mark changes of +10.45% and +19.18%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for DexCom. These revisions help to show the ever-changing nature of 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. 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. Over the past month, the Zacks Consensus EPS estimate has moved 9.48% lower. DexCom is currently a Zacks Rank #3 (Hold).
Digging into valuation, DexCom currently has a Forward P/E ratio of 100.76. For comparison, its industry has an average Forward P/E of 27.19, which means DexCom is trading at a premium to the group.
Also, we should mention that DXCM has a PEG ratio of 3.26. 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. The Medical - Instruments industry currently had an average PEG ratio of 1.92 as of yesterday's close.
The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 162, putting it in the bottom 36% 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.
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