Why DexCom, Inc. (DXCM) Is Skyrocketing

We recently compiled a list of the 10 Firms Shine Amid Wall Street’s Lackluster Trading. In this article, we are going to take a look at where DexCom, Inc. (NASDAQ:DXCM) stands against the other stocks.

A lackluster trading persisted throughout Thursday, with Wall Street’s main indices ending the day with only marginal changes.

The Dow Jones Industrial Average dipped by 0.16 percent, while the S&P 500 shed 0.21 percent, and the Nasdaq Composite declined by 0.89 percent.

Meanwhile, 10 companies bucked an overall dull trading, having posted impressive gains. Let’s take a closer look at the top performers and explore the factors driving their exceptional results.

To come up with Thursday’s top gainers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A doctor demonstrating how to use the medical device to a patient with diabetes.

DexCom, Inc. (NASDAQ:DXCM)

DexCom, Inc. (NASDAQ:DXCM), a company that manufactures and distributes continuous glucose monitoring systems for diabetes management, saw its shares rally by 5.52 percent on Thursday, ending the day at $84.84 each after earning an optimistic outlook from an analyst.

During the day, investment banking firm Baird upgraded its outlook for DexCom to “outperform” from “neutral,” citing progress in US sales and upcoming catalysts to buoy its business performance.

It also raised its price target for DexCom, Inc. (NASDAQ:DXCM) by 6 percent to $104 from $98 previously.

According to Baird, its outlook was based on projections of improved salesforce productivity and the potential for US growth to return to low-to-mid teens in the middle of the year.

DexCom also recently made earlier-than-expected progress on the G7 15-day sensor and its potential approval for hospital-based use.

Overall DXCM ranks 9th on our list of the stocks that skyrocketed today. While we acknowledge the potential of DXCM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than DXCM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.