DexCom stock (NASDAQ
NDAQ
: DXCM) currently trades at $102 per share, about 36% higher than the level seen in early June 2022, just before the Fed started increasing rates, compared to 19% gains for the S&P 500 during this period. The rally in the stock over recent months has been driven by a steady decline in the inflation rate in response to the Fed’s aggressive rate hike plan – although investors still have concerns about a potential recession. The notable increase in DexCom’s revenues over recent quarters has also contributed to the stock recovery.
Interestingly, DexCom
DXCM
stock has had a Sharpe Ratio of 0.7 since early 2017, higher than 0.6 for the S&P 500 Index over the same period. This compares with the Sharpe of 1.3 for the Trefis Reinforced Value portfolio. Sharpe is a measure of return per unit of risk, and high-performance portfolios can provide the best of both worlds.
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