Dropbox (DBX) ended the recent trading session at $27.32, demonstrating a -1.3% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.28%. Elsewhere, the Dow saw an upswing of 0.43%, while the tech-heavy Nasdaq appreciated by 0.09%.
Shares of the online file-sharing company have depreciated by 2.43% over the course of the past month, underperforming the Computer and Technology sector's gain of 6.2%, and the S&P 500's gain of 4.37%.
The investment community will be closely monitoring the performance of Dropbox in its forthcoming earnings report. In that report, analysts expect Dropbox to post earnings of $0.63 per share. This would mark year-over-year growth of 5%. Our most recent consensus estimate is calling for quarterly revenue of $617.77 million, down 2.64% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.61 per share and revenue of $2.48 billion, indicating changes of +4.82% and -2.57%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Dropbox. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Dropbox is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, Dropbox currently has a Forward P/E ratio of 10.6. This represents a discount compared to its industry average Forward P/E of 20.26.
Investors should also note that DBX has a PEG ratio of 7.31 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Services industry currently had an average PEG ratio of 1.59 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 152, positioning it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Dropbox, Inc. (DBX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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