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

Last update: May 7, 2024

Exploring Growth Potential: DEXCOM INC (NASDAQ:DXCM) and Its Base Formation. Growth investors seek promising revenue and EPS growth, and DEXCOM INC has come under our scrutiny for potential growth investing. While it's crucial to do your own research, we've detected DEXCOM INC on our screen for growth with base formation, suggesting it merits a closer look.

Assessing Growth Metrics for NASDAQ:DXCM

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:DXCM has earned a 9 for growth:

DXCM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 72.92%, which is quite impressive.
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 25.78%.
The Revenue has been growing by 28.56% 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 21.67% on average per year.
Based on estimates for the next years, DXCM will show a quite strong growth in Revenue. The Revenue will grow by 17.04% on average per year.

Assessing Health for NASDAQ:DXCM

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:DXCM has earned a 6 out of 10:

An Altman-Z score of 9.04 indicates that DXCM is not in any danger for bankruptcy at the moment.
DXCM's Altman-Z score of 9.04 is amongst the best of the industry. DXCM outperforms 86.98% of its industry peers.
With an excellent Debt to FCF ratio value of 4.27, DXCM belongs to the best of the industry, outperforming 84.90% of the companies in the same industry.
A Current Ratio of 2.90 indicates that DXCM has no problem at all paying its short term obligations.
A Quick Ratio of 2.53 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:

DXCM has a better Return On Assets (9.86%) than 93.23% of its industry peers.
DXCM's Return On Equity of 28.45% is amongst the best of the industry. DXCM outperforms 97.92% of its industry peers.
With an excellent Return On Invested Capital value of 11.18%, DXCM belongs to the best of the industry, outperforming 92.71% of the companies in the same industry.
The last Return On Invested Capital (11.18%) for DXCM is above the 3 year average (8.57%), which is a sign of increasing profitability.
With an excellent Profit Margin value of 16.82%, DXCM belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
DXCM's Operating Margin of 17.58% is amongst the best of the industry. DXCM outperforms 90.63% of its industry peers.
DXCM's Gross Margin of 63.25% is fine compared to the rest of the industry. DXCM outperforms 62.50% of its industry peers.

Looking at the Setup

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NASDAQ:DXCM currently has a 7 as setup rating:

DXCM has only a medium technical rating, but it does show a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a resistance zone just above the current price starting at 137.32. Right above this resistance zone may be a good entry point.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

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

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.