Dropbox (DBX) closed the most recent trading day at $22.44, moving +0.09% from the previous trading session. This move outpaced the S&P 500’s daily loss of 1.08%. At the same time, the Dow lost 1.51%, and the tech-heavy Nasdaq lost 0.86%.
Heading into today, shares of the online file-sharing company had lost 0.53% over the past month, lagging the Computer and Technology sector’s gain of 5.89% and the S&P 500’s loss of 0.3% in that time.
DBX will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.17, up 70% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $464.68 million, up 15.74% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.74 per share and revenue of $1.89 billion, which would represent changes of +48% and +13.68%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for DBX. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 52.94% higher. DBX currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, DBX is holding a Forward P/E ratio of 30.3. This represents a discount compared to its industry’s average Forward P/E of 33.78.
Investors should also note that DBX has a PEG ratio of 0.93 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Internet – Services was holding an average PEG ratio of 2.92 at yesterday’s closing price.
The Internet – Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dropbox, Inc. (DBX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research