Why Are People Talking About Investing in DXCM?

One of the losers of today's trading session was DexCom. Shares of the Medical instruments & supplies company plunged -4.6%, and some investors may be wondering if its price of $85.22 would make a good entry point. Here's what you should know if you are considering this investment:

  • DexCom has moved -29.0% over the last year, and the S&P 500 logged a change of 9.0%

  • DXCM has an average analyst rating of buy and is -37.22% away from its mean target price of $135.75 per share

  • Its trailing earnings per share (EPS) is $0.86

  • DexCom has a trailing 12 month Price to Earnings (P/E) ratio of 99.1 while the S&P 500 average is 15.97

  • Its forward earnings per share (EPS) is $1.6 and its forward P/E ratio is 53.3

  • The company has a Price to Book (P/B) ratio of 14.52 in contrast to the S&P 500's average ratio of 2.95

  • DexCom is part of the Health Care sector, which has an average P/E ratio of 24.45 and an average P/B of 4.16

  • DXCM has reported YOY quarterly earnings growth of 18.7% and gross profit margins of 0.6%

  • The company has a free cash flow of $596.21 Million, which refers to the total sum of all its inflows and outflows of cash over the last quarter

  • DexCom, Inc., a medical device company, focuses on the design, development, and commercialization of continuous glucose monitoring (CGM) systems in the United States and internationally. The company provides its systems for use by people with diabetes, as well as for use by healthcare providers. Its products include Dexcom G6 and Dexcom G7, integrated CGM systems for diabetes management; Dexcom Share, a remote monitoring system; Dexcom Real-Time API, which enables authorized third-party software developers to integrate real-time CGM data into their digital health apps and devices; and Dexcom ONE, that is designed to replace finger stick blood glucose testing for diabetes treatment decisions. The company has a collaboration and license agreement with Verily Life Sciences LLC and Verily Ireland Limited to develop blood-based or interstitial glucose monitoring products. It markets its products directly to endocrinologists, physicians, and diabetes educators. The company was incorporated in 1999 and is headquartered in San Diego, California.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.