DexCom, Inc. (DXCM), headquartered in California, is a leading player in the medical devices sector. Valued at a market cap of $30.4 billion, the company specializes in continuous glucose monitoring (CGM) systems for diabetes management. Its innovative devices provide real-time glucose data, enabling users to track their glucose levels and trends without fingerstick calibration

Companies valued at $10 billion or more are generally considered “large-cap” stocks, and DexCom fits this criterion perfectly, exceeding the mark. The company has established itself as a leader in CGM technology through a focus on innovation, user-friendly design, and integration with digital health platforms.

However, it's not all smooth sailing. The diabetes care technology leader has experienced a sharp decline, falling 44.8% from its 52-week high of $142 reached in March. Over the past three months, its shares have soared 12.5%, underperforming the broader Nasdaq Composite ($NASX), which has surged 16.9% over the same time frame.

Over the longer term, DXCM has faced a year-to-date decline of 36.8%, markedly underperforming the NASX's impressive 31.5% gains. Additionally, over the past 52 weeks, DexCom's shares have tumbled 33%, a stark contrast to the NASX's robust 37% return during the same timeframe.

While DXCM has been trading above its 50-day moving average since early November, it has remained below its 200-day moving average since late June.

Dexcom released its stronger-than-anticipated Q3 results on Oct. 24, topping estimates with an adjusted EPS of $0.45 and revenue of $994.2 million. However, DexCom's shares slipped 1.9% the following trading session due to investor concerns over decelerating sales growth, with revenue increasing a modest 2% year-over-year. Moreover, a drop in non-GAAP net income to $181 million from $204 million highlighted potential challenges to profitability.

In addition, its rival, Insulet Corporation (PODD), has outperformed DexCom. Insulet shares have risen by 36.2% over the past 52 weeks and are up 22.2% on a YTD basis.

Despite the stock’s relatively weak price action, analysts are highly optimistic about DXCM’s prospects. The stock has a consensus rating of “Strong Buy” from the 22 analysts in coverage, and the mean price target of $96.14 is a premium of 22.6% to current levels.