Shares of DexCom (NASDAQ:DXCM) had jumped 5% as of 3 p.m. EDT on Monday after rising as much as 6.1% earlier in the day. The diabetes-care technology company didn't announce any news. Instead, DexCom's rise appears to be due to the positive momentum for growth stocks in general.
When the overall stock market moves up (or down), it's not unusual for DexCom to move in tandem. The old saying that "a rising tide lifts all boats" is often true with stocks.
The more important thing to look at with DexCom, though, is the underlying business prospects that could potentially drive long-term growth. The company expects revenue to jump between 17% and 22% for full-year 2021 thanks to sustained high demand for its G6 continuous glucose monitoring (CGM) devices.
Much of the demand for the G6 CGM comes from individuals with type 1 diabetes. But DexCom continues to see increasing use of the device by individuals with type 2 diabetes.
DexCom expects to launch its newest CGM device, the G7, in the second half of this year. The G7 CGM could prove to be even more attractive to customers with a size that's less than half that of the already popular G6.