Is DexCom (DXCM) Stock Outpacing Its Medical Peers This Year?

The Medical group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. DexCom (DXCM) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Medical peers, we might be able to answer that question.

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DexCom is a member of our Medical group, which includes 987 different companies and currently sits at #6 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. DexCom is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for DXCM's full-year earnings has moved 0.2% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that DXCM has returned about 7.5% since the start of the calendar year. In comparison, Medical companies have returned an average of -2.9%. This shows that DexCom is outperforming its peers so far this year.

One other Medical stock that has outperformed the sector so far this year is Bayer Aktiengesellschaft (BAYRY). The stock is up 59.4% year-to-date.

The consensus estimate for Bayer Aktiengesellschaft's current year EPS has increased 6.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, DexCom belongs to the Medical - Instruments industry, which includes 84 individual stocks and currently sits at #186 in the Zacks Industry Rank. This group has lost an average of 7.5% so far this year, so DXCM is performing better in this area.

Bayer Aktiengesellschaft, however, belongs to the Large Cap Pharmaceuticals industry. Currently, this 10-stock industry is ranked #53. The industry has moved -0.3% so far this year.

Investors with an interest in Medical stocks should continue to track DexCom and Bayer Aktiengesellschaft. These stocks will be looking to continue their solid performance.

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DexCom, Inc. (DXCM) : Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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