Trade-Ideas: DexCom (DXCM) Is Today's New Lifetime High Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified DexCom ( DXCM) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified DexCom as such a stock due to the following factors:

  • DXCM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.5 million.
  • DXCM has traded 281,881 shares today.
  • DXCM is trading at a new lifetime high.

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More details on DXCM:

DexCom, Inc., a medical device company, focuses on the design, development, and commercialization of continuous glucose monitoring systems. Currently there are 8 analysts that rate DexCom a buy, 2 analysts rate it a sell, and 3 rate it a hold.

The average volume for DexCom has been 530,100 shares per day over the past 30 days. DexCom has a market cap of $2.0 billion and is part of the health care sector and health services industry. The stock has a beta of 0.55 and a short float of 8.7% with 12.35 days to cover. Shares are up 106.1% year to date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates DexCom as a sell. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity.

Highlights from the ratings report include:
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, DEXCOM INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • DEXCOM INC has improved earnings per share by 33.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, DEXCOM INC reported poor results of -$0.79 versus -$0.68 in the prior year. This year, the market expects an improvement in earnings (-$0.55 versus -$0.79).
  • The gross profit margin for DEXCOM INC is rather high; currently it is at 65.64%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -28.21% is in-line with the industry average.
  • Net operating cash flow has significantly increased by 114.22% to $0.90 million when compared to the same quarter last year. In addition, DEXCOM INC has also vastly surpassed the industry average cash flow growth rate of -37.43%.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Health Care Equipment & Supplies industry average. The net income increased by 31.3% when compared to the same quarter one year prior, rising from -$14.69 million to -$10.10 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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