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DexCom (DXCM) Gains But Lags Market: What You Should Know
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DexCom (DXCM - Free Report) closed at $107.86 in the latest trading session, marking a +1.56% move from the prior day. This change lagged the S&P 500's 1.89% gain on the day. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, added 10%.
Prior to today's trading, shares of the medical device company had lost 6.58% over the past month. This has lagged the Medical sector's gain of 0.54% and the S&P 500's gain of 2.3% in that time.
Investors will be hoping for strength from DexCom as it approaches its next earnings release. 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.
It is also important to note the recent changes to analyst estimates for DexCom. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 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 holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that DexCom has a Forward P/E ratio of 101.49 right now. For comparison, its industry has an average Forward P/E of 28.64, which means DexCom is trading at a premium to the group.
It is also worth noting that DXCM currently has a PEG ratio of 2.91. 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 industry currently had an average PEG ratio of 2.25 as of yesterday's close.
The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 143, which puts it in the bottom 44% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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DexCom (DXCM) Gains But Lags Market: What You Should Know
DexCom (DXCM - Free Report) closed at $107.86 in the latest trading session, marking a +1.56% move from the prior day. This change lagged the S&P 500's 1.89% gain on the day. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, added 10%.
Prior to today's trading, shares of the medical device company had lost 6.58% over the past month. This has lagged the Medical sector's gain of 0.54% and the S&P 500's gain of 2.3% in that time.
Investors will be hoping for strength from DexCom as it approaches its next earnings release. 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.
It is also important to note the recent changes to analyst estimates for DexCom. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 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 holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that DexCom has a Forward P/E ratio of 101.49 right now. For comparison, its industry has an average Forward P/E of 28.64, which means DexCom is trading at a premium to the group.
It is also worth noting that DXCM currently has a PEG ratio of 2.91. 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 industry currently had an average PEG ratio of 2.25 as of yesterday's close.
The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 143, which puts it in the bottom 44% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.