3 Reasons Growth Investors Will Love DexCom (DXCM)

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with DexCom (DXCM) being highlighted as a strong candidate due to its favorable growth metrics and Zacks Rank [2][9]. Group 1: Earnings Growth - DexCom has a historical EPS growth rate of 25%, with projected EPS growth of 23.8% for the current year, significantly outperforming the industry average of 14% [4]. - Earnings growth is crucial for investors, as double-digit growth is often seen as indicative of strong future prospects and potential stock price increases [3]. Group 2: Cash Flow Growth - The company currently exhibits a year-over-year cash flow growth of 9.8%, which is notably higher than the industry average of -0.7% [5]. - Over the past 3-5 years, DexCom has achieved an annualized cash flow growth rate of 32%, compared to the industry average of 6.5% [6]. Group 3: Earnings Estimate Revisions - There have been upward revisions in current-year earnings estimates for DexCom, with the Zacks Consensus Estimate increasing by 0.1% over the past month [8]. - Positive trends in earnings estimate revisions are strongly correlated with near-term stock price movements, indicating favorable conditions for DexCom [7]. Group 4: Overall Positioning - DexCom has earned a Growth Score of B and holds a Zacks Rank 2, reflecting its strong growth metrics and positive earnings estimate revisions, positioning it well for potential outperformance in the market [9][10].