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If You Invested $1000 in DexCom a Decade Ago, This is How Much It'd Be Worth Now

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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.

FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.

What if you'd invested in DexCom (DXCM - Free Report) ten years ago? It may not have been easy to hold on to DXCM for all that time, but if you did, how much would your investment be worth today?

DexCom's Business In-Depth

With that in mind, let's take a look at DexCom's main business drivers.

San Diego, CA-based DexCom, Inc. is a medical device company focused on the design, development and commercialization of continuous glucose monitoring systems (CGM). These are for ambulatory use by people with diabetes and by healthcare providers for the treatment of diabetic and non-diabetic patients.

A key element of DexCom’s monitoring system technology is the continuous measure of patient's blood glucose level and transmission of that information to a small cell phone-sized receiver in real time. The company’s monitoring systems aim to provide real-time continuous blood glucose values, trend data and alerts to assist patients in managing their blood glucose levels.

Going by an article of Research and Markets, the blood glucose monitoring devices market is expected to witness a CAGR of over 9% between 2018 and 2024.

DexCom has collaborative agreements with several companies, which should not only bring in cash in the form of milestone payments and royalties but should also help expand its product use. It is also focusing on international markets

However, market for blood glucose monitoring devices is highly competitive, subject to rapid change and significantly affected by new product introductions.

2022 at a Glance

For the full-year 2022, the company reported adjusted EPS of 87 cents, up 77.6% from 2021. Full-year 2022 revenues came in at $2.91 billion, up 19% year over year.

Revenues in the United States were up 16%. International revenues were up 28% and 31% reportedly and organically, respectively.

Bottom Line

Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For DexCom, if you bought shares a decade ago, you're likely feeling really good about your investment today.

According to our calculations, a $1000 investment made in July 2013 would be worth $23,108.12, or a 2,210.81% gain, as of July 17, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.

In comparison, the S&P 500 gained 168.15% and the price of gold went up 47.12% over the same time frame.

Analysts are anticipating more upside for DXCM.

DexCom exited first-quarter 2023 on a strong note, wherein earnings and revenues beat the Zacks Consensus Estimate. Impressive contribution from the Sensor segment, and domestic and international revenue growth were key catalysts. DexCom’s prospects in alternative markets bode well. The company made continued advancements with respect to key strategic objectives and ended the quarter with new patient additions. Its slew of tie-ups and buyouts are encouraging. A solid international foothold and robust product portfolio augur well. A strong solvency position is an added plus. So far this year, DexCom has outperformed its industry. However, the company faces stiff competition in the market for blood & glucose monitoring devices. Reimbursement risk and supply constraints are other headwinds.

The stock is up 5.55% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2023. The consensus estimate has moved up as well.

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