DEXCOM INC (NASDAQ:DXCM) – A Strong Growth Stock with a Bullish Technical Setup

DEXCOM INC (NASDAQ:DXCM) was identified by our screener as a strong growth stock with a favorable technical setup. The company, known for its continuous glucose monitoring systems, combines solid fundamentals with a promising chart pattern. Below, we examine why DXCM stands out.

Fundamental Strengths

• Growth Potential: DXCM has demonstrated strong revenue growth, averaging 22.27% annually over the past years. Future earnings are expected to grow at 20.38% per year, reinforcing its growth profile.
• Profitability: The company scores a 9/10 in profitability, with a robust Return on Equity (23.61%) and an improving operating margin (16.54%).
• Valuation: While the P/E ratio of 52.53 appears high, it is still below the industry average, suggesting relative affordability compared to peers.

Technical Setup

• Bull Flag Pattern: The stock is forming a bull flag, a continuation pattern often seen after a strong upward move. This suggests potential for further gains if the breakout holds.
• Support and Resistance: Key support lies near $84.50, while resistance sits around $88.75. A breakout above resistance could signal an entry opportunity.
• Trend Strength: Both short-term and long-term trends are positive, reinforcing the bullish case.

For a deeper dive, review the full fundamental report and technical analysis.

Our Strong Growth Stocks with Good Technical Setup screener lists more stocks meeting these criteria.

Disclaimer

This is not investment advice. The observations are based on current data, but market conditions can change. Always conduct your own research before making investment decisions.