July 25 was a difficult day for (NASDAQ: DXCM) shareholders, with the company's second-quarter earnings release crashing the stock by 40%. To make matters worse, at the moment it's unclear whether its troubles are just a bump in the road, or it's starting down a rocky path.

So is the stock still a smart purchase, given the steep discount it's trading at right now? Let's investigate.

DexCom's shocking crash wasn't caused by poor earnings. In fact, it slightly beat analysts' expectations for its quarterly earnings per share (EPS), reporting $0.43 per share when $0.39 was the consensus estimate. Its revenue growth looked fine, too, rising by 15% year over year to reach just over $1 billion on a reported basis.

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Source Fool.com