DexCom (DXCM) Outpaces Stock Market Gains: What You Should Know

DexCom (DXCM) closed the most recent trading day at $405.40, moving +1.81% from the previous trading session. This change outpaced the S&P 500's 1.54% gain on the day. Elsewhere, the Dow gained 0.85%, while the tech-heavy Nasdaq added 1.87%.

Heading into today, shares of the medical device company had gained 5.15% over the past month, outpacing the Medical sector's loss of 2.77% and the S&P 500's gain of 0.57% in that time.

Investors will be hoping for strength from DXCM as it approaches its next earnings release. The company is expected to report EPS of $0.12, up 50% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $405.37 million, up 20.5% 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 +20.33%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for DXCM. These recent revisions tend to reflect the evolving nature of short-term business trends. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.29% higher. DXCM currently has a Zacks Rank of #3 (Hold).

Digging into valuation, DXCM currently has a Forward P/E ratio of 178.42. Its industry sports an average Forward P/E of 43.2, so we one might conclude that DXCM is trading at a premium comparatively.

The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 154, which puts it in the bottom 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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