DexCom, Inc. (DXCM), with a market cap of $33.9 billion, is a leading medical device company specializing in continuous glucose monitoring (CGM) systems for diabetes management. Founded in 1999 and headquartered in San Diego, California, Dexcom has been at the forefront of CGM technology, transforming how people manage diabetes.

This healthcare company’s shares have substantially trailed the broader market over the past 52 weeks. DexCom has declined 34% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 11.5%. However, the stock is up 10.2% on a YTD basis, compared to SPX’s marginal rise during the same time frame.

Zooming in further, DexCom has lagged behind the Health Care Select Sector SPDR Fund’s (XLV) 10.8% fall over the past 52 weeks but has outpaced XLV’s 5.2% fall on a YTD basis. 

On May 1, DexCom released its Q1 2025 earnings, and its shares surged 16.2% in the next trading session. Its revenue rose 12% year-over-year to $1.04 billion, beating expectations, fueled by robust U.S. demand and solid international growth. However, profitability took a hit as net income fell 28% to $105.4 million and gross margin slipped to 56.9% due to higher supply-related costs. Adjusted EPS came in at $0.32, slightly below consensus.

For the current year ending in December, analysts expect DexCom's EPS to grow 23.2% year over year to $2.02. The company’s earnings surprise history is mixed. It surpassed the Wall Street estimates in two of the last four quarters while missing on two other occasions. 

Among the 24 analysts covering the stock, the consensus rating is a “Strong Buy,” which is based on 19 “Strong Buy,” one “Moderate Buy,” and four “Hold” ratings.

This configuration is modestly more bullish than two months ago, with 18 analysts suggesting a “Strong Buy” rating. 

On May 5, Barclays plc (BCS) analyst Matt Miksic raised DexCom’s price target from $90 to $93, reflecting a 3.33% increase, while maintaining an "Equal-Weight" rating. The unchanged rating suggests expectations for the stock to perform in line with the broader market, though the revised target hints at a slightly more optimistic outlook based on recent or anticipated developments.

The mean price target of $97.88 represents an 18.1% upside from DXCM’s current price levels, while the Street-high price target of $125 suggests an upside potential of 48.7%.