Yahoo Finance DexCom (DXCM) Gains But Lags Market: What You Should Know
In the latest trading session, DexCom (DXCM) closed at $106.72, marking a +0.07% move from the previous day. This move lagged the S&P 500's daily gain of 0.25%. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, added 7.26%.
Coming into today, shares of the medical device company had lost 4.84% in the past month. In that same time, the Medical sector lost 0.75%, while the S&P 500 gained 5.73%.
DexCom will be looking to display strength as it nears its next earnings release, which is expected to be February 9, 2023. The company is expected to report EPS of $0.26, up 52.94% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $811.79 million, up 16.27% from the year-ago period.
Investors should also note any recent changes to analyst estimates for DexCom. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.95% lower. DexCom is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that DexCom has a Forward P/E ratio of 101.92 right now. For comparison, its industry has an average Forward P/E of 28.88, which means DexCom is trading at a premium to the group.
It is also worth noting that DXCM currently has a PEG ratio of 2.92. 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 was holding an average PEG ratio of 2.27 at yesterday's closing price.
The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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DexCom, Inc. (DXCM) : Free Stock Analysis Report
