DexCom (DXCM) Dips More Than Broader Markets: What You Should Know
DexCom (DXCM) closed at $387.84 in the latest trading session, marking a -1.17% move from the prior day. This change lagged the S&P 500's daily loss of 0.22%. At the same time, the Dow lost 0.35%, and the tech-heavy Nasdaq lost 0.28%.
Prior to today's trading, shares of the medical device company had lost 1.43% over the past month. This has was narrower than the Medical sector's loss of 2.05% and lagged the S&P 500's gain of 3.82% in that time.
Investors will be hoping for strength from DXCM as it approaches its next earnings release, which is expected to be October 27, 2020. The company is expected to report EPS of $0.64, down 1.54% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $474.08 million, up 19.63% from the year-ago period.
DXCM's full-year Zacks Consensus Estimates are calling for earnings of $2.66 per share and revenue of $1.86 billion. These results would represent year-over-year changes of +44.57% and +26.23%, respectively.
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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.17% lower. DXCM is holding a Zacks Rank of #4 (Sell) right now.
Investors should also note DXCM's current valuation metrics, including its Forward P/E ratio of 147.28. For comparison, its industry has an average Forward P/E of 60.17, which means DXCM is trading at a premium to the group.
Meanwhile, DXCM's PEG ratio is currently 3.89. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Medical - Instruments was holding an average PEG ratio of 3.93 at yesterday's closing price.
The Medical - Instruments industry is part of the Medical sector. This group has a Zacks Industry Rank of 182, putting it in the bottom 29% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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