Target This Medical Device Stock in August

DexCom stock has generated the highest August returns over the past 10 years

Managing Editor
Aug 5, 2020 at 11:30 AM
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Lost in the shuffle of healthcare stocks this year has been DexCom Inc, (NASDAQ:DXCM), which has quietly doubled in value over the course of 2020. Better yet, there could be more upside on the way, as the medical device supplier enters a historically bullish month.

Best August Stocks

According to data from Schaeffer's Senior Quantitative Analyst Rocky White, over the last 10 years, DXCM has been one of the best stocks to own in August. The stock averages the highest monthly return of all S&P 500 components, up 14% and positive 80% of the time. That far outpaces second place Synopsis' (SNPS) 5.6% pop.

At last check, DexCom stock was up 1.2% to trade at $447.06. A move of similar magnitude in one month would put the equity at new record high territory and above the psychologically significant $500 level. In the last 12 months, DXCM has tripled, with the shares' 50-day moving average containing pullbacks along the way.

Daily Stock Chart DXCM

Now looks to be an attractive time to bet on the equity's next moves with options. This is per DXCM's Schaeffer's Volatility Index (SVI) of 46%, which sits in the 14th percentile of its annual range. In simpler terms, options players are pricing in relatively low volatility expectations right now.

 
 

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