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DexCom (DXCM) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research
·3-min read

DexCom (DXCM) closed the most recent trading day at $439.64, moving -0.2% from the previous trading session. This move lagged the S&P 500's daily gain of 1.05%. Elsewhere, the Dow gained 1.44%, while the tech-heavy Nasdaq added 0.66%.

Heading into today, shares of the medical device company had gained 21.45% over the past month, outpacing the Medical sector's loss of 1.32% and the S&P 500's loss of 1.56% in that time.

Wall Street will be looking for positivity from DXCM as it approaches its next earnings report date. This is expected to be July 28, 2020. In that report, analysts expect DXCM to post earnings of $0.28 per share. This would mark year-over-year growth of 250%. Meanwhile, our latest consensus estimate is calling for revenue of $406.09 million, up 20.72% from the prior-year quarter.

DXCM's full-year Zacks Consensus Estimates are calling for earnings of $2.23 per share and revenue of $1.78 billion. These results would represent year-over-year changes of +21.2% and +20.45%, respectively.

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Any recent changes to analyst estimates for DXCM should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business 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 correlated with near-term stock prices. 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.

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. Within the past 30 days, our consensus EPS projection has moved 0.49% higher. DXCM is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, DXCM is holding a Forward P/E ratio of 197.37. This valuation marks a premium compared to its industry's average Forward P/E of 45.83.

The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 152, which puts it in the bottom 41% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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