Long Trade Idea
Enter your long position between $66.74 (yesterday’s intra-day low) and $68.75 (yesterday’s intra-day high).
Market Index Analysis
DexCom (DXCM) is a member of the NASDAQ 100 Index and the S&P 500 Index.
Both indices trade inside bearish chart patterns with decreasing bullish trading volumes.
The Bull Bear Power Indicator of the NASDAQ 100 Index is bearish with a descending trendline.
Market Sentiment Analysis
Equity futures are modestly higher this morning as markets digest the ongoing news flow from Iran. On the oil front, the US claimed it destroyed numerous Iranian ships, including 16 mine-laying vessels, while one Greek oil tanker exited the Strait of Hormuz with its signal turned off. The International Energy Agency is proposing a record release of oil to counter prices. Today will also see the release of February’s CPI data, while markets await tomorrow’s earnings from Adobe and Dollar Tree, after Oracle beat expectations and raised its outlook.
DexCom Fundamental Analysis
DexCom is a leader in continuous glucose monitoring (CGM). Its G7 device is the most accurate CGM approved in the US, and DexCom is at the core of the MAHA (Make America Healthy Again) movement.
So, why am I bullish on DXCM despite its recent slide?
I remain bullish on DexCom amid the expansion of insurance coverage for its continuous glucose monitoring (CGM) systems. Its latest earnings release showed margin expansion to 17.9% for fiscal 2025 from 14.3% for fiscal 2024. The 15-day wear G7 CGM system boosted margins by reducing the number of sensors patients need to wear each month. I am also bullish about its over-the-counter (OTC) Stelo product, which caters to the pre-diabetes and wellness market and works on a subscription-based model. International expansion into markets such as Japan and Saudi Arabia offers exciting growth opportunities.
Metric | Value | Verdict |
P/E Ratio | 32.44 | Bullish |
P/B Ratio | 9.63 | Bearish |
PEG Ratio | 1.02 | Bullish |
Current Ratio | 1.88 | Bearish |
ROIC-WACC Ratio | Positive | Bullish |
DexCom Fundamental Analysis Snapshot
The price-to-earning (P/E) ratio of 32.44 makes DXCM an inexpensive stock. By comparison, the P/E ratio for the NASDAQ 100 Index is 36.52.
The average analyst price target for DXCM is $85.85. It suggests excellent upside potential with manageable downside risks.
DexCom Technical Analysis
Today’s DXCM Signal
DexCom Price Chart
The DXCM D1 chart shows a price action inside a bullish price channel.
It also shows price action between its descending 50.0% and 61.8% Fibonacci Retracement Fan levels.
The Bull Bear Power Indicator is bearish but remains above its ascending trendline.
The average bullish trading volumes are higher than the average bearish trading volumes.
DXCM corrected with the S&P 500 Index, which is a bearish confirmation, but upside catalysts are accumulating.
My DXCM Long Stock Trade
DXCM Entry Level: Between 66.74 and 68.75
DXCM Take Profit: Between 85.85 and 88.43
DXCM Stop Loss: Between 58.29 and 60.07
Risk/Reward Ratio: 2.26
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