What Happened?
A number of stocks fell in the afternoon session after the February jobs report revealed an unexpected contraction in employment, with the healthcare industry showing significant job losses.
According to the Bureau of Labor Statistics, the economy lost 92,000 nonfarm payroll jobs, a stark reversal from the 50,000 gain that was anticipated by economists. The healthcare sector, typically a consistent source of job growth, shed 28,000 positions. This disappointing data has raised investor concerns about a potential economic slowdown, which could lead to reduced healthcare spending and demand for services, contributing to the sector's decline in the market.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Research Tools & Consumables company Bio-Techne (NASDAQ: TECH) fell 3%. Is now the time to buy Bio-Techne? Access our full analysis report here, it’s free.
- Research Tools & Consumables company Bruker (NASDAQ: BRKR) fell 3%. Is now the time to buy Bruker? Access our full analysis report here, it’s free.
- Patient Monitoring company DexCom (NASDAQ: DXCM) fell 3.8%. Is now the time to buy DexCom? Access our full analysis report here, it’s free.
- Surgical Equipment & Consumables - Diversified company STERIS (NYSE: STE) fell 2.5%. Is now the time to buy STERIS? Access our full analysis report here, it’s free.
- Surgical Equipment & Consumables - Specialty company Teleflex (NYSE: TFX) fell 1.7%. Is now the time to buy Teleflex? Access our full analysis report here, it’s free.
Zooming In On DexCom (DXCM)
DexCom’s shares are quite volatile and have had 15 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 21 days ago when the stock gained 7.3% on the news that it reported better-than-expected fourth-quarter 2025 financial results, beating analyst estimates for both revenue and earnings.
The company announced quarterly revenue of $1.26 billion, up 13.1% from the previous year. Its adjusted earnings per share came in at $0.68, surpassing the prior year's figure of $0.45 and topping Wall Street's forecasts. While DexCom's revenue and earnings surpassed expectations, the company's full-year revenue guidance was in line with analyst estimates. The positive investor reaction suggests a focus on the strong quarterly performance and profitability growth.
DexCom is up 2% since the beginning of the year, but at $67.86 per share, it is still trading 24.2% below its 52-week high of $89.53 from July 2025. Investors who bought $1,000 worth of DexCom’s shares 5 years ago would now be looking at an investment worth $770.96.
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