Exploring the Growth Potential of NASDAQ:DXCM as It Nears a Breakout.

Last update: Dec 2, 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.

Understanding NASDAQ:DXCM's Growth Score

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 8 out of 10:

The Earnings Per Share has grown by an impressive 25.93% over the past year.
DXCM shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 83.54% yearly.
DXCM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.19%.
DXCM shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 28.56% yearly.
DXCM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.67% yearly.
DXCM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 17.04% yearly.

What does the Health looks like for NASDAQ:DXCM

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:DXCM, the assigned 6 for health provides valuable insights:

An Altman-Z score of 5.93 indicates that DXCM is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.93, DXCM belongs to the top of the industry, outperforming 80.75% of the companies in the same industry.
DXCM's Debt to FCF ratio of 4.67 is amongst the best of the industry. DXCM outperforms 81.82% of its industry peers.
A Current Ratio of 2.46 indicates that DXCM has no problem at all paying its short term obligations.
DXCM has a Quick Ratio of 2.12. This indicates that DXCM is financially healthy and has no problem in meeting its short term obligations.

Analyzing Profitability Metrics

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 Return On Assets of 10.71%. This is amongst the best in the industry. DXCM outperforms 91.98% of its industry peers.
With an excellent Return On Equity value of 34.40%, DXCM belongs to the best of the industry, outperforming 97.86% of the companies in the same industry.
The Return On Invested Capital of DXCM (11.41%) is better than 93.58% of its industry peers.
The last Return On Invested Capital (11.41%) for DXCM is above the 3 year average (8.57%), which is a sign of increasing profitability.
DXCM's Profit Margin of 17.22% is amongst the best of the industry. DXCM outperforms 91.98% of its industry peers.
DXCM has a Operating Margin of 16.30%. This is amongst the best in the industry. DXCM outperforms 88.24% of its industry peers.
DXCM's Gross Margin of 62.10% is fine compared to the rest of the industry. DXCM outperforms 63.64% of its industry peers.

How does the Setup look 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 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 78.00. Right above this resistance zone may be a good entry point. Very recently a Pocket Pivot signal was observed. This is another positive sign.

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

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

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

Keep in mind

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.