Dexcom is Monday's selection for IBD 50 Stocks To Watch as the medical device maker raised its sales outlook. Dexcom stock passed a buy point of 126.37 out of a cup with handle in morning trades.
The company got a boost when it reported earnings Oct. 27. For the third quarter ended Sept. 30, sales grew 27% to $975 million while earnings of 50 cents per share grew 79%.
Shares gapped up in the strongest volume since the base started forming and it quickly retook the 50-day moving average.
Dexcom stock has a Composite Rating of 95 and EPS Rating of 98. The Relative Strength Rating is at 87, according to IBD MarketSmith.
Sales growth has been steady over the past eight months while earnings over the past five quarters also show that the company has turned profitable.
Dexcom Stock Rises On Raised 2024 Outlook
Then on Monday, the company hiked its outlook on its full-year revenue to a range of $3.575 billion-$3.6 billion, indicating growth of 23%-24%. For 2024, the company expects sales of $4.25 billion at the midpoint. Shares were up 3.7% in morning trades as a result.
Dexcom makes continuous glucose monitoring devices for patients with diabetes. In the fourth quarter, the company expects to launch a new glucose monitor, Stelo, for patients with type 2 diabetes who do not use insulin, The launch is pending FDA approval.
According to Dexcom Chief Executive Jake Leach, "Understanding glucose levels is key to unlocking our metabolic health, and Stelo will help users see first-hand how their health is affected by factors such as diet, exercise, sleep and stress."
Dexcom went public in 2005. Meanwhile, funds have been picking the stock over the past five quarters.
Mutual funds own 62% of outstanding shares. The Artisan Mid Cap Fund (ARTMX) and the Barron Asset Fund (BARAX) hold shares of the glucose monitor maker. Among exchange traded funds, State Street's Health Care Select Sector SPDR Fund and the iShares U.S. Medical Devices ETF hold shares of DXCM stock.
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