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DexCom (DXCM) Soars 9.8%: Is Further Upside Left in the Stock?

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DexCom (DXCM - Free Report) shares ended the last trading session 9.8% higher at $133.72. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 2.5% loss over the past four weeks.

The surge in stock price was likely driven by FDA clearance for Stelo glucose biosensor, available over-the-counter to consumers without a prescription. As an alternative for people without insurance coverage for continuous glucose monitoring sensors like G7, Stelo's approval for non-prescription use would further facilitate this population's access to cutting-edge CGM technology.

This medical device company is expected to post quarterly earnings of $0.27 per share in its upcoming report, which represents a year-over-year change of +58.8%. Revenues are expected to be $909.9 million, up 22.7% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For DexCom, the consensus EPS estimate for the quarter has been revised 3.7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on DXCM going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

DexCom belongs to the Zacks Medical - Instruments industry. Another stock from the same industry, Delcath Systems, Inc. (DCTH - Free Report) , closed the last trading session 1.1% lower at $3.90. Over the past month, DCTH has returned -15.7%.

Delcath Systems, Inc.'s consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.67. Compared to the company's year-ago EPS, this represents a change of +22.1%. Delcath Systems, Inc. currently boasts a Zacks Rank of #3 (Hold).


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