NASDAQ:DXCM: a strong growth stock preparing for the next leg up?.

Last update: Jan 25, 2024

In this article we will dive into DEXCOM INC (NASDAQ:DXCM) as a possible candidate for growth investing. Investors should always do their own research, but we noticed DEXCOM INC showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

What does the Growth looks like for NASDAQ:DXCM

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:DXCM has achieved 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.
Looking at the last year, DXCM shows a very strong growth in Revenue. The Revenue has grown by 21.85%.
The Revenue has been growing by 32.28% on average over the past years. This is a very strong growth!
DXCM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.04% yearly.
Based on estimates for the next years, DXCM will show a quite strong growth in Revenue. The Revenue will grow by 19.72% on average per year.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Health Analysis for NASDAQ:DXCM

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:DXCM has achieved a 6 out of 10:

An Altman-Z score of 8.31 indicates that DXCM is not in any danger for bankruptcy at the moment.
DXCM's Altman-Z score of 8.31 is amongst the best of the industry. DXCM outperforms 87.88% of its industry peers.
The Debt to FCF ratio of DXCM (5.23) is better than 83.84% of its industry peers.
A Current Ratio of 2.80 indicates that DXCM has no problem at all paying its short term obligations.
DXCM has a Quick Ratio of 2.50. This indicates that DXCM is financially healthy and has no problem in meeting its short term obligations.

A Closer Look at Profitability for NASDAQ:DXCM

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:DXCM has achieved a 8:

DXCM has a Return On Assets of 5.72%. This is amongst the best in the industry. DXCM outperforms 85.35% of its industry peers.
The Return On Equity of DXCM (16.62%) is better than 92.93% of its industry peers.
DXCM's Return On Invested Capital of 9.08% is amongst the best of the industry. DXCM outperforms 90.40% of its industry peers.
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.
The Profit Margin of DXCM (11.08%) is better than 88.89% of its industry peers.
In the last couple of years the Profit Margin of DXCM has grown nicely.
DXCM has a Operating Margin of 15.28%. This is amongst the best in the industry. DXCM outperforms 87.88% of its industry peers.
DXCM's Operating Margin has improved in the last couple of years.
DXCM has a better Gross Margin (64.28%) than 67.68% of its industry peers.

Why is NASDAQ:DXCM a setup?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:DXCM scores a 8 out of 10:

DXCM has an excellent technical rating and 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. There is a support zone below the current price at 127.04, a Stop Loss order could be placed below this zone.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of DXCM

For an up to date full technical analysis you can check the technical report of DXCM

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.