Yahoo Finance DexCom (DXCM) Gains But Lags Market: What You Should Know
DexCom (DXCM) closed at $108.03 in the latest trading session, marking a +0.3% move from the prior day. The stock lagged the S&P 500's daily gain of 1.47%. Meanwhile, the Dow lost 0.11%, and the Nasdaq, a tech-heavy index, added 7.94%.
Coming into today, shares of the medical device company had lost 5.79% in the past month. In that same time, the Medical sector lost 0.48%, while the S&P 500 gained 7.41%.
Investors will be hoping for strength from DexCom as it approaches its next earnings release, which is expected to be February 9, 2023. On that day, DexCom is projected to report earnings of $0.26 per share, which would represent year-over-year growth of 52.94%. Our most recent consensus estimate is calling for quarterly revenue of $811.79 million, up 16.27% from the year-ago period.
Any recent changes to analyst estimates for DexCom should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 2.95% lower within the past month. DexCom is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note DexCom's current valuation metrics, including its Forward P/E ratio of 102.94. For comparison, its industry has an average Forward P/E of 29.27, which means DexCom is trading at a premium to the group.
It is also worth noting that DXCM currently has a PEG ratio of 2.95. 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 was holding an average PEG ratio of 2.31 at yesterday's closing price.
The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 76, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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DexCom, Inc. (DXCM) : Free Stock Analysis Report
