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

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether DEXCOM INC (NASDAQ:DXCM) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but DEXCOM INC has surfaced on our radar for growth with base formation, warranting further examination.

Understanding NASDAQ:DXCM's Growth

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:DXCM boasts a 9 out of 10:

• DXCM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 73.56%, 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.
• The Revenue has grown by 24.49% in the past year. This is a very strong growth!
• 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.
• DXCM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.18% yearly.
• Based on estimates for the next years, DXCM will show a quite strong growth in Revenue. The Revenue will grow by 17.84% on average per year.

Deciphering NASDAQ:DXCM's Health Rating

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:DXCM scores a 6 out of 10:

• An Altman-Z score of 9.42 indicates that DXCM is not in any danger for bankruptcy at the moment.
• DXCM's Altman-Z score of 9.42 is amongst the best of the industry. DXCM outperforms 87.76% of its industry peers.
• With an excellent Debt to FCF ratio value of 4.87, DXCM belongs to the best of the industry, outperforming 82.65% of the companies in the same industry.
• DXCM has a Current Ratio of 2.84. 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 Assessment of 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:

• With an excellent Return On Assets value of 8.64%, DXCM belongs to the best of the industry, outperforming 90.82% of the companies in the same industry.
• With an excellent Return On Equity value of 26.18%, DXCM belongs to the best of the industry, outperforming 97.45% of the companies in the same industry.
• DXCM has a better Return On Invested Capital (10.67%) than 92.86% of its industry peers.
• The 3 year average ROIC (8.57%) for DXCM is below the current ROIC(10.67%), indicating increased profibility in the last year.
• Looking at the Profit Margin, with a value of 14.95%, DXCM belongs to the top of the industry, outperforming 92.35% of the companies in the same industry.
• DXCM has a better Operating Margin (16.96%) than 89.80% of its industry peers.
• DXCM has a Gross Margin of 63.65%. This is in the better half of the industry: DXCM outperforms 63.78% of its industry peers.

How do we evaluate the setup for NASDAQ:DXCM?

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 8 as setup rating:

DXCM has an excellent technical rating and also presents 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 140.33. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 138.43, a Stop Loss order could be placed below this zone.

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

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

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

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.