In the latest trading session, DexCom (DXCM) closed at $68.81, marking a +1.21% move from the previous day. This move outpaced the S&P 500’s daily gain of 0.22%. Elsewhere, the Dow lost 0.13%, while the tech-heavy Nasdaq added 0.22%.
Coming into today, shares of the medical device company had lost 14.32% in the past month. In that same time, the Medical sector lost 5.2%, while the S&P 500 lost 10.02%.
Wall Street will be looking for positivity from DexCom as it approaches its next earnings report date. The company is expected to report EPS of $0.16, down 15.79% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $695.8 million, up 16.92% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.74 per share and revenue of $2.92 billion. These totals would mark changes of +10.45% and +19.18%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for DexCom. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 9.51% lower. DexCom is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that DexCom has a Forward P/E ratio of 92.85 right now. For comparison, its industry has an average Forward P/E of 25.9, which means DexCom is trading at a premium to the group.
It is also worth noting that DXCM currently has a PEG ratio of 3. 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. DXCM’s industry had an average PEG ratio of 1.87 as of yesterday’s close.
The Medical – Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 180, putting it in the bottom 29% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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