About Dexcom Stock - buy or watch only now?

Dexcom Stock

The diabetes treatment company's shares are buyable after the stock staged a bullish rebound from 50-day and 10-week lines. However, it is worth noting the relative strength line has been declining in recent weeks. Overall though, the RS line has been behaving extremely bullishly since late October.

Dexcom stock has an almost-perfect Composite Rating of 98. The Stock Checkup Tool shows earnings growth is not as strong as the firm's technical performance. Nevertheless average earnings growth of 448% over the past three quarters is mighty impressive. It also accelerated to 980% growth in the most recent quarter.

Dexcom stock previously shot to a record high following the medical product firm's big earnings beat in early November. Dexcom earnings exploded 261% to 65 cents a share, more than triple analyst estimates for 20 cents. Revenue of $396.3 million also crushed views for $347.9 million.

Dexcom sells continuous glucose monitors, or CGMs, for patients with diabetes. Its newest CGM is called G6. These devices are bringing rapid changes to the way doctors treat diabetes Many patients are now receiving the medical devices through pharmacies. This has lowered the barriers to adoption and led to a spike in demand.

For patients with Type 1 diabetes and insulin-intensive Type 2 diabetes, glucose monitors and insulin pumps can offer a technological replacement for finger sticks and multiple daily injections. Dexcom, Abbott (ABT) and Medtronic (MDT) sell glucose monitors. Tandem Diabetes (TNDM), Insulet (PODD) and Medtronic make insulin pumps.

For more information on Dexcom stock, check out this recent New America article on the company.

Reprint from Investor's Business Daily. All copyrights are reserved by the original author.