Why NASDAQ:DXCM Is a Promising High-Growth Stock in the Midst of Consolidation.

In this article, we'll take a closer look at DEXCOM INC (NASDAQ:DXCM) as a potential candidate for growth investing. While it's important for investors to conduct their own research, DEXCOM INC has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

What does the Growth looks like for NASDAQ:DXCM

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:DXCM has received a 9 out of 10:

• The Earnings Per Share has grown by an impressive 92.86% over the past year.
• DXCM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 23.89% yearly.
• The Revenue has grown by 21.85% in the past year. This is a very strong growth!
• The Revenue has been growing by 32.28% on average over the past years. This is a very strong growth!
• Based on estimates for the next years, DXCM will show a very strong growth in Earnings Per Share. The EPS will grow by 35.04% on average per year.
• The Revenue is expected to grow by 19.72% on average over the next years. This is quite good.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Health Assessment of NASDAQ:DXCM

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:DXCM has received a 6 out of 10:

• An Altman-Z score of 8.08 indicates that DXCM is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 8.08, DXCM belongs to the top of the industry, outperforming 87.56% of the companies in the same industry.
• DXCM has a Debt to FCF ratio of 5.23. This is amongst the best in the industry. DXCM outperforms 84.08% of its industry peers.
• DXCM has a Current Ratio of 2.80. This indicates that DXCM is financially healthy and has no problem in meeting its short term obligations.
• A Quick Ratio of 2.50 indicates that DXCM has no problem at all paying its short term obligations.

Profitability Examination for NASDAQ:DXCM

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:DXCM has earned a 8 out of 10:

• Looking at the Return On Assets, with a value of 5.72%, DXCM belongs to the top of the industry, outperforming 85.57% of the companies in the same industry.
• DXCM has a Return On Equity of 16.62%. This is amongst the best in the industry. DXCM outperforms 93.03% of its industry peers.
• With an excellent Return On Invested Capital value of 9.08%, DXCM belongs to the best of the industry, outperforming 90.55% of the companies in the same industry.
• The last Return On Invested Capital (9.08%) for DXCM is above the 3 year average (7.78%), which is a sign of increasing profitability.
• DXCM has a better Profit Margin (11.08%) than 89.05% of its industry peers.
• In the last couple of years the Profit Margin of DXCM has grown nicely.
• With an excellent Operating Margin value of 15.28%, DXCM belongs to the best of the industry, outperforming 88.06% of the companies in the same industry.
• DXCM's Operating Margin has improved in the last couple of years.
• The Gross Margin of DXCM (64.28%) is better than 67.66% of its industry peers.

How does the Setup look for NASDAQ:DXCM

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NASDAQ:DXCM is 8:

Besides having an excellent technical rating, DXCM also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price.

More Strong Growth stocks can be found in our Strong Growth screener.

Check the latest full fundamental report of DXCM for a complete fundamental analysis.

Our latest full technical report of DXCM contains the most current technical analsysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.