In the latest trading session, DexCom (DXCM) closed at $413.22, marking a -1.13% move from the previous day. This change lagged the S&P 500's 0.34% loss on the day. Meanwhile, the Dow lost 0.5%, and the Nasdaq, a tech-heavy index, lost 0.73%.
Prior to today's trading, shares of the medical device company had gained 3.66% over the past month. This has lagged the Medical sector's gain of 5.8% and the S&P 500's gain of 5.71% in that time.
DXCM will be looking to display strength as it nears its next earnings release, which is expected to be July 28, 2020. The company is expected to report EPS of $0.28, up 250% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $406.09 million, up 20.72% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.23 per share and revenue of $1.78 billion, which would represent changes of +21.2% and +20.54%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for DXCM. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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 0.08% lower. DXCM is currently a Zacks Rank #3 (Hold).
In terms of valuation, DXCM is currently trading at a Forward P/E ratio of 187.42. For comparison, its industry has an average Forward P/E of 48.42, which means DXCM is trading at a premium to the group.
The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 149, putting it in the bottom 42% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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