DXCM - Is DexCom Stock Too Pricey to Buy?
If you've had sticker shock while perusing the grocery store recently and decided not to buy something you normally would, DexCom (NASDAQ: DXCM) might not be the stock for you. The medical device company's status as a solid growth stock is much the same as it ever was, but it's not exactly the good deal that it might have been a few years ago.
Yet, there are a few reasons to believe that its high price tag could be justifiable for some investors. Let's break down this company's valuation and take a look at its growth prospects to see if buying a few shares could be a good financial decision for you.
If you're just learning about DexCom for the first time, it develops and sells continuous glucose monitors (CGMs), which people with type 2 diabetes use to control their blood sugar levels more effectively and comfortably than with traditional finger-stick tests that need to be done several times per day. It's also a company that's been great for investors with a total return of around 2,400% over the past 10 years. But after a run-up like that, it's no surprise to see a loss of momentum.
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Is DexCom Stock Too Pricey to Buy?