DEXCOM INC (NASDAQ:DXCM) – A Strong Growth Stock with Technical Breakout Potential

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 fundamental growth metrics with a promising chart pattern. Below, we examine why DXCM stands out.

Fundamental Strengths

• Growth: DXCM has demonstrated strong revenue growth, averaging 22.27% annually over recent years. Analysts expect earnings to grow by 22.56% in the coming years, reinforcing its growth trajectory.
• Profitability: The company scores a 9/10 in profitability, with industry-leading margins, including a 16.54% operating margin and 12.90% profit margin.
• Valuation: While the P/E ratio appears high at 50.65, it is relatively cheaper than many peers in the Health Care Equipment sector.
• Financial Health: With an Altman-Z score of 5.96, DXCM shows low bankruptcy risk, though liquidity metrics are slightly weaker than industry averages.

Technical Setup

• Consolidation Phase: DXCM has been trading in a range between $77.81 and $88.32, with recent price action near the middle of this zone. A breakout above $88.75 could signal further upside.
• Support Levels: Key support lies at $81.73-$82.11, backed by moving averages and trendlines. A hold above this zone may confirm bullish momentum.
• Volume & Momentum: The stock maintains healthy liquidity, with an average daily volume of 3.8 million shares, supporting potential breakout moves.

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

Our Strong Growth Stocks with Good Technical Setup Ratings screener lists more stocks meeting these criteria and is updated daily.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should always conduct your own analysis before making investment decisions.