DexCom (DXCM) Soars 5.6%: Is Further Upside Left in the Stock?

DexCom (DXCM) shares rallied 5.6% in the last trading session to close at $80.04. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 1.8% gain over the past four weeks.The sharp upsurge in Dexcom's shares can be attributed to the Novo Nordisk's announcement that its next-generation weight-loss drug, CagriSema, did not meet the high expectations in a key study, achieving a 22.7% weight loss instead of the anticipated 25%. This shortfall led to a significant decline in Novo Nordisk's stock. In contrast, companies specializing in diabetes-treating devices, such as Dexcom, saw their stocks rise, as the news may have shifted investor sentiment favorably towards these companies.This medical device company is expected to post quarterly earnings of $0.52 per share in its upcoming report, which represents a year-over-year change of +4%. Revenues are expected to be $1.1 billion, up 5.9% from the year-ago quarter.While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.For DexCom, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on DXCM going forward to see if this recent jump can turn into more strength down the road.The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>DexCom belongs to the Zacks Medical - Instruments industry. Another stock from the same industry, Edwards Lifesciences (EW), closed the last trading session 1.2% higher at $74.81. Over the past month, EW has returned 5%.For Edwards Lifesciences, the consensus EPS estimate for the upcoming report has changed +0.1% over the past month to $0.55. This represents a change of -14.1% from what the company reported a year ago. Edwards Lifesciences currently has a Zacks Rank of #3 (Hold).Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report DexCom, Inc. (DXCM): Free Stock Analysis Report Edwards Lifesciences Corporation (EW): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks