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DexCom (DXCM) shares rallied 5.6% in the last trading session to close at $80.04. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 1.8% gain over the past four weeks.
The sharp upsurge in Dexcom's shares can be attributed to the Novo Nordisk's announcement that its next-generation weight-loss drug, CagriSema, did not meet the high expectations in a key study, achieving a 22.7% weight loss instead of the anticipated 25%. This shortfall led to a significant decline in Novo Nordisk's stock. In contrast, companies specializing in diabetes-treating devices, such as Dexcom, saw their stocks rise, as the news may have shifted investor sentiment favorably towards these companies.
This medical device company is expected to post quarterly earnings of $0.52 per share in its upcoming report, which represents a year-over-year change of +4%. Revenues are expected to be $1.1 billion, up 5.9% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For DexCom, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on DXCM going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
DexCom belongs to the Zacks Medical - Instruments industry. Another stock from the same industry, Edwards Lifesciences (EW), closed the last trading session 1.2% higher at $74.81. Over the past month, EW has returned 5%.
For Edwards Lifesciences , the consensus EPS estimate for the upcoming report has changed +0.1% over the past month to $0.55. This represents a change of -14.1% from what the company reported a year ago. Edwards Lifesciences currently has a Zacks Rank of #3 (Hold).
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DexCom, Inc. (DXCM) : Free Stock Analysis Report
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