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DexCom (DXCM) Stock Sinks As Market Gains: What You Should Know
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DexCom (DXCM - Free Report) closed the latest trading day at $83.09, indicating a -0.16% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 0.63%. At the same time, the Dow added 0.59%, and the tech-heavy Nasdaq gained 0.39%.
Shares of the medical device company have depreciated by 20.25% over the course of the past month, underperforming the Medical sector's loss of 1.62% and the S&P 500's loss of 3.39%.
The investment community will be paying close attention to the earnings performance of DexCom in its upcoming release. The company is slated to reveal its earnings on October 26, 2023. The company's earnings per share (EPS) are projected to be $0.34, reflecting a 21.43% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $936.02 million, reflecting a 21.62% rise from the equivalent quarter last year.
DXCM's full-year Zacks Consensus Estimates are calling for earnings of $1.23 per share and revenue of $3.54 billion. These results would represent year-over-year changes of +41.38% and +21.74%, respectively.
Investors should also note any recent changes to analyst estimates for DexCom. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. DexCom presently features a Zacks Rank of #3 (Hold).
With respect to valuation, DexCom is currently being traded at a Forward P/E ratio of 67.61. For comparison, its industry has an average Forward P/E of 25.02, which means DexCom is trading at a premium to the group.
Also, we should mention that DXCM has a PEG ratio of 1.58. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Instruments industry currently had an average PEG ratio of 2.08 as of yesterday's close.
The Medical - Instruments industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 100, finds itself in the top 40% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow DXCM in the coming trading sessions, be sure to utilize Zacks.com.
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DexCom (DXCM) Stock Sinks As Market Gains: What You Should Know
DexCom (DXCM - Free Report) closed the latest trading day at $83.09, indicating a -0.16% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 0.63%. At the same time, the Dow added 0.59%, and the tech-heavy Nasdaq gained 0.39%.
Shares of the medical device company have depreciated by 20.25% over the course of the past month, underperforming the Medical sector's loss of 1.62% and the S&P 500's loss of 3.39%.
The investment community will be paying close attention to the earnings performance of DexCom in its upcoming release. The company is slated to reveal its earnings on October 26, 2023. The company's earnings per share (EPS) are projected to be $0.34, reflecting a 21.43% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $936.02 million, reflecting a 21.62% rise from the equivalent quarter last year.
DXCM's full-year Zacks Consensus Estimates are calling for earnings of $1.23 per share and revenue of $3.54 billion. These results would represent year-over-year changes of +41.38% and +21.74%, respectively.
Investors should also note any recent changes to analyst estimates for DexCom. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. DexCom presently features a Zacks Rank of #3 (Hold).
With respect to valuation, DexCom is currently being traded at a Forward P/E ratio of 67.61. For comparison, its industry has an average Forward P/E of 25.02, which means DexCom is trading at a premium to the group.
Also, we should mention that DXCM has a PEG ratio of 1.58. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Medical - Instruments industry currently had an average PEG ratio of 2.08 as of yesterday's close.
The Medical - Instruments industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 100, finds itself in the top 40% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow DXCM in the coming trading sessions, be sure to utilize Zacks.com.