DexCom (DXCM) closed at $389.31 in the latest trading session, marking a +0.8% move from the prior day. This move outpaced the S&P 500's daily loss of 1.12%. Meanwhile, the Dow lost 0.88%, and the Nasdaq, a tech-heavy index, lost 1.07%.
Heading into today, shares of the medical device company had lost 10.58% over the past month, lagging the Medical sector's loss of 0.65% and the S&P 500's loss of 0.59% in that time.
Wall Street will be looking for positivity from DXCM as it approaches its next earnings report date. On that day, DXCM is projected to report earnings of $0.64 per share, which would represent a year-over-year decline of 1.54%. Meanwhile, our latest consensus estimate is calling for revenue of $474.08 million, up 19.63% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.67 per share and revenue of $1.86 billion. These totals would mark changes of +45.11% and +26.23%, respectively, from last year.
Any recent changes to analyst estimates for DXCM should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. DXCM is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note DXCM's current valuation metrics, including its Forward P/E ratio of 144.7. This represents a premium compared to its industry's average Forward P/E of 46.94.
Meanwhile, DXCM's PEG ratio is currently 3.82. 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. Medical - Instruments stocks are, on average, holding a PEG ratio of 3.87 based on yesterday's closing prices.
The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 181, putting it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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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