Key Considerations for Investing in DexCom (DXCM)

By Ken Smith • Sunday, October 06 15:11 • Permanent Link

DexCom logged a 3.7% change during today's afternoon session, and is now trading at a price of $68.11 per share. The S&P 500 index moved 1.0%. DXCM's trading volume is 6,336,526 compared to the stock's average volume of 5,612,048.

DexCom trades -29.96% away from its average analyst target price of $97.25 per share. The 23 analysts following the stock have set target prices ranging from $75.0 to $130.0, and on average have given DexCom a rating of buy.

If you are considering an investment in DXCM, you'll want to know the following:

DexCom's current price is 477.7% above its Graham number of $11.79, which implies that at its current valuation it does not offer a margin of safety
DexCom has moved -18.0% over the last year, and the S&P 500 logged a change of 32.6%
Based on its trailing earnings per share of 1.61, DexCom has a trailing 12 month Price to Earnings (P/E) ratio of 42.3 while the S&P 500 average is 29.3
DXCM has a forward P/E ratio of 33.9 based on its forward 12 month price to earnings (EPS) of $2.01 per share
The company has a price to earnings growth (PEG) ratio of 2.39 — a number near or below 1 signifying that DexCom is fairly valued compared to its estimated growth potential
Its Price to Book (P/B) ratio is 11.21 compared to its sector average of 3.53
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.
Based in San Diego, the company has 9,500 full time employees and a market cap of $27.29 Billion.

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.