The stock price of DexCom (NASDAQ: DXCM), best known for its continuous glucose monitoring systems, has risen by 10% over the last five trading days. Earlier in January, the company reported strong preliminary numbers for Q4, with an estimated top-line growth over 20% y-o-y. The company will report its Q4 and full year results on Thursday, February 11. However, what has kept the stock buzzing over the past week was its first ever commercial for Super Bowl, starring Nick Jonas. The commercial calls for better care for people with diabetes without pricking fingers to measure their glucose levels. The commercial is aimed to increase awareness of DexCom’s G6 CGM at one of the most watched sports events in the U.S. The 10% rise in DXCM stock compares with just 2% growth seen in the broader S&P 500 index. Now, is DXCM stock poised to gain further? We think so. We believe that DexCom will continue to benefit from its advanced CGM systems with ease of monitoring at home, compared to clinic visits or other CGM devices that require finger pricking. There is a 61% chance of a rise in DXCM stock over the next month (twenty one trading days) based on our machine learning analysis of trends in the stock price over the last five years. See our analysis on DexCom Stock Chances of Rise for more details. Curious about the possibility of rising over the next quarter? Check out the DXCM Stock AI Dashboard: Chances Of Rise And Fall for a variety of scenarios on how DXCM stock could move.
5D: DXCM 9.9%, vs. S&P500 2.4%; Outperformed market
(7% likelihood event)
- DexCom stock rose 9.9% over a five-day trading period ending 2/4/2021, compared to the broader market (S&P500) rise of 2.4%
- A change of 9.9% or more over five trading days is a 7% likelihood event, which has occurred 94 times out of 1256 in the last five years
10D: DXCM 9.7%, vs. S&P500 0.7%; Outperformed market
(30% likelihood event)
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- DexCom stock rose 9.7% over the last ten trading days (two weeks), compared to broader market (S&P500) rise of 0.7%
- A change of 9.7% or more over ten trading days is a 30% likelihood event, which has occurred 380 times out of 1240 in the last five years
While DXCM stock could gain more, 2020 has also created many pricing discontinuities which can offer attractive trading opportunities. For example, you’ll be surprised how counter-intuitive the stock valuation is for Pfizer vs Merck.