/Dexcom%20Inc%20HQ-by%20JHVEPhoto%20via%20Shutterstock.jpg)
San Diego, California-based DexCom, Inc. (DXCM) is a medical device company that designs, develops, and commercializes continuous glucose monitoring (CGM) systems. Valued at $32.1 billion by market cap, the company develops a small implantable device that continuously measures glucose levels in subcutaneous tissue just under the skin and a small external receiver to which the sensor transmits glucose levels at specified intervals.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and DXCM perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the medical devices industry. DexCom leads in diabetes care with its advanced CGM systems like G6 and G7, driving innovation and convenience. Strategic partnerships with insulin pump companies enhance its offerings and market reach, solidifying its position in the growing diabetes market.
Despite its notable strength, DXCM slipped 30.5% from its 52-week high of $117.91, achieved on Jun. 17, 2024. Over the past three months, DXCM stock gained 19.7%, outperforming the Health Care Select Sector SPDR Fund’s (XLV) 5.4% dip during the same time frame.
In the longer term, shares of DXCM rose 5.4% on a YTD basis, outperforming XLV’s YTD losses of 1.1%. However, the stock fell 28% over the past 52 weeks, underperforming XLV’s 6.7% drop over the last year.
To confirm the bullish trend, DXCM is trading above its 50-day and 200-day moving averages since early May.
On May 1, DXCM reported its Q1 results, and its shares closed up more than 16% in the following trading session. Its adjusted EPS of $0.32 did not meet Wall Street expectations of $0.33. The company’s revenue was $1.04 billion, exceeding Wall Street forecasts of $1.02 billion. DXCM expects full-year revenue to be $4.6 billion.
In the competitive arena of medical devices, Insulet Corporation (PODD) has taken the lead over DXCM, showing resilience with a 16.7% uptick on a YTD basis and solid 50.9% gains over the past 52 weeks.
Wall Street analysts are bullish on DXCM’s prospects. The stock has a consensus “Strong Buy” rating from the 24 analysts covering it, and the mean price target of $99.50 suggests a potential upside of 21.4% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
