- Registered at 16.27% higher quarterly revenue of $811.79 million.
- DXCM is trading premium at a Forward P/E ratio of 101.49.
- The next earning release is expected to be $0.26, with year-to-year growth of 52.94%.
Dexcom, Inc. (DXCM), founded in 1999 and HQ in San Diego, California, is a healthcare sector giant, especially with their medical devices focused on continuous glucose monitoring (CGM). The company aims to replace finger stick blood glucose testing and allow remote monitoring systems, so that affected people can have a normal life. With rising cases of diabetes, the company managed to have quarterly revenue of around $811.79 million, which is 16.27% higher compared to a similar time frame last year.
DXCM Price Analysis
Currently trading at $107.86 with a jump of 1.66%, the previous close and open were at 106.20. While its 52 weeks range was from 66.89 to 134.76, meaning that the current rate was closer to the higher rate. Day’s range at the week’s closing was 104.99 to 108.99; the current rate was closer to the higher.
The company’s market cap was strong at 41.662 billion, with a volume of 2.39 million shares. The expected price target is 122.00, while the projected earning growth was 34.18%, from $0.79 to $1.06 per share.
Dexcom Inc. is close to its next earnings release and is expected to be $0.26 per share, representing a year-over-year growth of 52.94%. At the same time, its Forward P/E ratio is 101.49 but the average Forward P/E ratio of companies is around 28.64. Making DXCM a company trading at a premium to the group.
DXCM Chart Analysis
The chart is fairly stable, without any drastic movement in any direction, and has its support at 91.01 while resistance at 135.10.
With inflation and fear of recession circulating the market, there is limited possibility of a positive breakthrough or a scenario where the price point crosses the resistance. But one thing can be assumed until the support point of $91.01 is not crossed; any downward movement would create an opportunity for buying.
Although the whole sentiment of the market is bearish, the same is the scenario with this, but the solid working structure indicates that the company can fight this bear. There may be chances that the bear might not be defeated, but chances of the company bending the knee to it are rare.
There was a huge gap at the start of November 2022, and the current downtrend is there to fill the gap. The closer range of movements can be supposed to be between $99.18 and $118.01. If the price crosses any point of this range, it is expected to consolidate within support or resistance before breaking further.
Overall Review
Almost all major tech stocks are not performing well, and companies are forced to lay off employees. By nature, pharmaceutical stocks are considered stable, but if there is overall growth in the market, DXCM might have a positive jump too.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/01/22/dexcominc-dxcm-is-the-pharma-stock-profitable/