Stock of the Day

DexCom (DXCM)

$83.93

+$0.04 (+0.1%)

Market Cap: $33.00B

About DexCom

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. It has also submitted FDA review for Dexcom Stelo for people with type 2 diabetes. 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.

DexCom Bull Case

Here are some ways that investors could benefit from investing in DexCom, Inc.:

• The company reported a revenue increase of 12.5% year-over-year, indicating strong growth potential in the medical device market.
• DexCom, Inc. has a robust return on equity of 30.05%, suggesting effective management and profitability in generating returns for shareholders.
• The current stock price is around $84, which may present a buying opportunity for investors looking to enter at a favorable valuation.
• Analysts forecast an earnings per share (EPS) of 2.03 for the current fiscal year, reflecting positive expectations for the company's financial performance.
• With a market capitalization of approximately $32.44 billion, DexCom, Inc. is positioned as a significant player in the continuous glucose monitoring sector, attracting institutional interest.

DexCom Bear Case

Investors should be bearish about investing in DexCom, Inc. for these reasons:

• The company missed analysts' EPS estimates by $0.01, which may raise concerns about its ability to meet market expectations consistently.
• Insider selling activity has been noted, with executives selling a total of 27,190 shares recently, which could signal a lack of confidence in the stock's short-term performance.
• The stock has a high price-to-earnings (P/E) ratio of 61.74, indicating that it may be overvalued compared to its earnings, which could deter value-focused investors.
• With a beta of 1.44, the stock is more volatile than the market, suggesting that it may experience larger price swings, which could be risky for conservative investors.
• Despite revenue growth, the company's net margin of 12.90% may not be sufficient to sustain long-term profitability in a competitive market.

Recent News

• DexCom: Delivering Consistent Growth (seekingalpha.com)
• Still Too Pricey? DexCom's Double-Digit Growth May Not Be Enough (seekingalpha.com)
• Why This Beaten-Down Medical Device Stock Could Be Your Best Investment for the Next 5 Years (fool.com)
• Dexcom recalls glucose monitor receivers due to alert failure risk (in.investing.com)
• FDA updates recall of certain Dexcom CGM speakers (seekingalpha.com)
• Dexcom Unveils Season 4 Roster for Game-Changing NIL Program at Signing Day Camp Hosted by Mark Andrews (businesswire.com)
• DexCom (DXCM) Upgraded to Strong Buy: Here's What You Should Know (msn.com)