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San Diego, California-based DexCom, Inc. (DXCM) is a medical device company. It focuses on the design, development, and commercialization of continuous glucose monitoring (CGM) systems. With a market cap of $31.6 billion, DexCom's operations span the Americas, Europe, and internationally.
Companies worth $10 billion or more are generally described as “large-cap stocks.” DexCom fits the bill perfectly. Given the company’s strong customer base and dominance in the niche space of diabetes, its valuation above this mark is unsurprising. The company provides its systems for the management of diabetes and metabolic health for patients, caregivers, and clinicians.
Despite its strengths, DexCom stock has plunged 16.4% from its 52-week high of $93.25 touched on Feb. 18. Meanwhile, the stock has dropped by 10% over the past three months, notably underperforming the industry-focused iShares U.S. Medical Devices ETF’s (IHI) marginal 72 bps observed during the same time frame.
Further, DXCM stock has experienced a marginal 30 bps uptick in 2025, lagging behind IHI’s 7.2% gains on a YTD basis. However, the stock has soared 13.7% over the past 52 weeks, outpacing IHI’s 7.7% returns over the past year.
To confirm the bearish trend, DXCM traded mostly below its 200-day moving average until May and dropped below its 50-day moving average in late July.
Despite delivering better-than-expected results, DexCom’s stock prices plunged 9.3% in the trading session following the release of its Q2 results on Jul. 30. Driven by solid organic growth at home and internationally, the company’s overall topline for the quarter soared 15.2% year-over-year to $1.2 billion, surpassing the consensus estimates by 3.1%. DexCom registered an 11.6% growth in non-GAAP EPS to $0.48, exceeding the Street’s expectations by 6.7%. The company’s bottom-line growth has significantly suffered due to a contraction in gross margin.
Meanwhile, the company announced its succession plan; its current CEO, Kevin Sayer, is set to step down from his position by the end of this year, and the news was probably not taken well by the market.
DexCom’s peer, STERIS plc’s (STE) stock has soared 20.8% on a YTD basis, outpacing DXCM. However, DexCom has notably outperformed STE’s 3.5% uptick over the past 52 weeks.
Among the 27 analysts covering the DXCM stock, the consensus rating is a “Strong Buy.” Its mean price target of $102.50 suggests a 31.4% upside potential from current price levels.
On the date of publication, Aditya Sarawgi 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.
