NASDAQ:DXCM—Positioned as a High-Growth Stock, Ready for a Potential Breakout.

Last update: Mar 21, 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.

How We Gauge Growth for NASDAQ:DXCM

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:DXCM scores a 9 out of 10:

The Earnings Per Share has grown by an impressive 73.56% over the past year.
Measured over the past years, DXCM shows a very strong growth in Earnings Per Share. The EPS has been growing by 83.54% on average per year.
DXCM shows a strong growth in Revenue. In the last year, the Revenue has grown by 24.49%.
Measured over the past years, DXCM shows a very strong growth in Revenue. The Revenue has been growing by 28.56% on average per year.
DXCM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.18% yearly.
The Revenue is expected to grow by 17.84% on average over the next years. This is quite good.

Health Examination for NASDAQ:DXCM

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:DXCM was assigned a score of 6 for health:

An Altman-Z score of 8.99 indicates that DXCM is not in any danger for bankruptcy at the moment.
DXCM has a Altman-Z score of 8.99. This is amongst the best in the industry. DXCM outperforms 87.76% of its industry peers.
The Debt to FCF ratio of DXCM (4.87) is better than 82.65% of its industry peers.
DXCM has a Current Ratio of 2.84. This indicates that DXCM is financially healthy and has no problem in meeting its short term obligations.
DXCM has a Quick Ratio of 2.48. This indicates that DXCM is financially healthy and has no problem in meeting its short term obligations.

Assessing Profitability for NASDAQ:DXCM

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:DXCM was assigned a score of 8 for profitability:

DXCM's Return On Assets of 8.64% is amongst the best of the industry. DXCM outperforms 90.82% of its industry peers.
DXCM has a Return On Equity of 26.18%. This is amongst the best in the industry. DXCM outperforms 97.45% of its industry peers.
DXCM's Return On Invested Capital of 10.67% is amongst the best of the industry. DXCM outperforms 92.35% of its industry peers.
The 3 year average ROIC (8.57%) for DXCM is below the current ROIC(10.67%), indicating increased profibility in the last year.
The Profit Margin of DXCM (14.95%) is better than 92.35% of its industry peers.
DXCM has a better Operating Margin (16.96%) than 89.80% of its industry peers.
Looking at the Gross Margin, with a value of 63.65%, DXCM is in the better half of the industry, outperforming 64.80% of the companies in the same industry.

How do we evaluate the setup for NASDAQ:DXCM?

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NASDAQ:DXCM is 7:

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 a resistance zone just above the current price starting at 137.33. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 126.20, a Stop Loss order could be placed below this zone.

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

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

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

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.