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

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.

Exploring NASDAQ:DXCM's Growth

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 54.87%, which is quite impressive.
• DXCM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 83.54% yearly.
• Looking at the last year, DXCM shows a very strong growth in Revenue. The Revenue has grown by 23.05%.
• 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.
• The Earnings Per Share is expected to grow by 21.67% on average over the next years. This is a very strong growth
• The Revenue is expected to grow by 17.04% on average over the next years. This is quite good.

Understanding NASDAQ:DXCM's Health Score

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:DXCM, the assigned 6 reflects its health status:

• DXCM has an Altman-Z score of 5.77. This indicates that DXCM is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 5.77, DXCM belongs to the best of the industry, outperforming 80.10% of the companies in the same industry.
• DXCM has a debt to FCF ratio of 3.75. This is a good value and a sign of high solvency as DXCM would need 3.75 years to pay back of all of its debts.
• DXCM has a Debt to FCF ratio of 3.75. This is amongst the best in the industry. DXCM outperforms 84.82% of its industry peers.
• DXCM has a Current Ratio of 2.82. This indicates that DXCM is financially healthy and has no problem in meeting its short term obligations.
• A Quick Ratio of 2.48 indicates that DXCM has no problem at all paying its short term obligations.

Profitability Examination for NASDAQ:DXCM

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:DXCM, the assigned 8 is a significant indicator of profitability:

• The Return On Assets of DXCM (9.81%) is better than 92.15% of its industry peers.
• With an excellent Return On Equity value of 27.40%, DXCM belongs to the best of the industry, outperforming 96.86% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 11.24%, DXCM belongs to the top of the industry, outperforming 93.19% of the companies in the same industry.
• The 3 year average ROIC (8.57%) for DXCM is below the current ROIC(11.24%), indicating increased profibility in the last year.
• With an excellent Profit Margin value of 16.95%, DXCM belongs to the best of the industry, outperforming 93.19% of the companies in the same industry.
• DXCM has a Operating Margin of 17.74%. This is amongst the best in the industry. DXCM outperforms 90.58% of its industry peers.
• DXCM has a Gross Margin of 63.16%. This is in the better half of the industry: DXCM outperforms 63.87% of its industry peers.

Looking at the Setup

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 8:

Although the technical rating is bad, DXCM does present a nice setup opportunity. 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.

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

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

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.