DexCom (DXCM) Upgraded to Strong Buy: Here's What You Should Know

Core Viewpoint - DexCom (DXCM) has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The change in a company's future earnings potential, as indicated by earnings estimate revisions, is strongly correlated with near-term stock price movements [3]. - Institutional investors often rely on earnings estimates to calculate the fair value of a company's shares, leading to buying or selling actions that affect stock prices [3]. DexCom's Earnings Outlook - The recent rating upgrade for DexCom reflects an improvement in the company's underlying business, which is expected to positively influence its stock price [4]. - For the fiscal year ending December 2025, DexCom is projected to earn $2.03 per share, with a 0.2% increase in the Zacks Consensus Estimate over the past three months [7]. Zacks Rank System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6]. - The upgrade of DexCom to a Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9].