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DexCom, Inc. (DXCM), headquartered in San Diego, California, is a global leader in the development and manufacturing of continuous glucose monitoring (CGM) systems. The company primarily serves people with diabetes by offering advanced, real-time monitoring solutions that track glucose levels, enabling more precise and proactive diabetes management.
DexCom’s flagship products include the DexCom G6 and G7 systems, which provide users with continuous, non-invasive data for better glucose control. Beyond diabetes, DexCom is expanding into areas like diabetes prevention and insulin dosing optimization, positioning itself as a key player in the evolving healthcare and medical device sectors. The company has a market capitalization of $31.36 billion.
Shares of this medical device company have gained 12.6% over the past 52 weeks, underperforming the broader S&P 500 Index ($SPX), which has gained 19% over the same period. This year, the stock has gained a modest 2.8%, while the S&P 500 index is up almost 10% year-to-date (YTD).
To put this into perspective, we compare with the sector-specific iShares U.S. Medical Devices ETF (IHI). The ETF’s gains have more or less aligned with DexCom’s, rising by 10.3% over the past 52 weeks and 5.9% on a YTD basis.
Despite DexCom’s strong second-quarter results on Jul. 30, the market's reaction was not positive, as the stock price dropped a notable 9.3% the very next trading session. The company’s revenue increased 15.2% year-over-year (YOY) to $1.16 billion. DexCom also received FDA clearance for the DexCom G7 15 Day CGM System. Its adjusted EPS increased 11.6% YOY to $0.48, surpassing the $0.45 figure expected by Wall Street analysts.
For the fiscal year 2025, ending this December, Wall Street analysts expect DexCom’s bottom line to grow by 25% YOY to $2.05 per share on a diluted basis. The company has a mixed history of surpassing consensus estimates, topping them in two of the trailing four quarters and missing them on two other occasions.
Among the 25 analysts covering DexCom’s stock, the consensus is a “Strong Buy.” That’s based on 20 “Strong Buy” ratings, one “Moderate Buy” rating, and four “Holds.” The current configuration of the ratings is slightly more bullish than two months ago, when the stock had 19 “Strong Buy” ratings.
Reflecting a stable market outlook for the company, Canaccord Genuity analyst William Plovanic maintained a “Buy” rating on the stock this month, while keeping the price target at $106. On July 31, Raymond James analyst Jayson Bedford maintained a "Strong Buy" rating, with the price target on the stock raised from $99 to $102.
DexCom’s mean price target of $102.60 indicates a premium of 28.3% from the current market prices. The Street-high price target of $125 implies a potential upside of 56.3%.
