News

In the latest trading session, DexCom (DXCM) closed at $139.93, marking a -0.12% move from the previous day. This change was narrower than the S&P 500's daily loss of 0.28%. Elsewhere, the Dow saw a downswing of 0.08%, while the tech-heavy Nasdaq depreciated by 0.42%.

Prior to today's trading, shares of the medical device company had gained 20.6% over the past month. This has outpaced the Medical sector's loss of 1.21% and the S&P 500's gain of 2.67% in that time.

The investment community will be closely monitoring the performance of DexCom in its forthcoming earnings report. The company is predicted to post an EPS of $0.27, indicating a 58.82% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $911.19 million, up 22.88% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.76 per share and a revenue of $4.32 billion, representing changes of +15.79% and +19.21%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for DexCom. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

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. Over the past month, the Zacks Consensus EPS estimate has moved 1% higher. DexCom is currently sporting a Zacks Rank of #2 (Buy).

Digging into valuation, DexCom currently has a Forward P/E ratio of 79.6. This indicates a premium in contrast to its industry's Forward P/E of 26.65.

Investors should also note that DXCM has a PEG ratio of 2.41 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Medical - Instruments industry currently had an average PEG ratio of 2.41 as of yesterday's close.

The Medical - Instruments industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 68, finds itself in the top 27% echelons of all 250+ industries.

The Zacks Industry Rank is ordered 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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