Is DexCom Stock Underperforming the S&P 500?

Core Viewpoint - DexCom, Inc. is a leading medical device company specializing in continuous glucose monitoring systems, with a market cap of $24.8 billion, indicating its significant influence in the diabetes care market [1][2]. Company Overview - DexCom designs and commercializes CGM systems, including a small implantable device for measuring glucose levels and an external receiver for data transmission [1]. - The company is categorized as a large-cap stock, reflecting its substantial market presence and dominance in the medical devices industry [2]. Market Performance - DexCom's stock has experienced a decline of 30.9% from its 52-week high of $93.25, reached on February 18, and has underperformed the S&P 500 Index, which gained 6.5% over the same period [3]. - Over the past six months, DexCom shares fell by 24.6%, and over the past year, they decreased by 18.7%, significantly lagging behind the S&P 500's gains of 15.1% and 12.9%, respectively [4]. Technical Analysis - The stock has been trading below its 200-day moving average since early August, indicating a bearish trend, although it recently traded above the 50-day moving average [4]. Challenges and Concerns - The company's underperformance is attributed to an FDA warning letter regarding manufacturing issues, trade war concerns with China affecting supply chains, and higher scrap rates along with sensor deployment issues [5]. - Management is optimistic about improvements due to new quality controls and shipping methods [5]. Financial Results - In Q3, DexCom reported an adjusted EPS of $0.61, exceeding Wall Street's expectation of $0.57, and revenue of $1.21 billion, surpassing the forecast of $1.18 billion [6]. - The company anticipates full-year revenue between $4.6 billion and $4.7 billion [6].