DexCom (DXCM) trades at $64.64, down 2.4% with a composite score of -5/100, indicating a weak quantitative profile, particularly with a Sharpe ratio of 0.22 and a forward P/E of 21.6, which is stretched given the 13% revenue growth and 18% margin. The stock's options market is severely overpriced, with an IV/RV ratio of 3.68x, and the market is pricing in a bearish outlook, with a 50% bullish probability and a 13.5% expected move. The key risk is whether the company's growth can justify its valuation multiple, or if the recent weakness, fueled by bearish news sentiment, will persist.
Composite
-5
/ 100
1M
-2.9%
3M
-6.1%
6M
-0.3%
1Y
+6.8%
Trend
DOWN
Sharpe
0.22
Fundamentals
Sector
Healthcare
Industry
Medical Devices
Market Cap
$25B
Fwd P/E
21.6
Trail P/E
30.9
Beta
1.56
Short Interest
5.5%
Analyst Target
$87
Margin
18%
Rev Growth
13%
EPS Growth
78%
ROE
34%
D/E
51%
From 52w High
-28.1%
From 52w Low
+19.5%
Consensus
Strong Buy
Research Digest
DexCom's (DXCM) share price has declined 5.9% over 7 days and 14.9% over 30 days, closing at $62.22. The stock's growth prospects remain intact with a 13% revenue growth forecast and a forward P/E of 21.6. However, the market may be pricing in high expectations, with a beta of 1.56 and short interest of 5.5%, posing a risk to the upside.
Options are NOT attractive. IV/RV 3.7x — options severely overpriced; Thin chain — wide spreads, poor fills; Only 5% forward probability of a 15% move.