Dropbox (DBX) closed at $31.68 in the latest trading session, marking a -1.52% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.1% for the day. Meanwhile, the Dow gained 0.57%, and the Nasdaq, a tech-heavy index, lost 0.33%.
Prior to today's trading, shares of the online file-sharing company had gained 13.72% outpaced the Computer and Technology sector's gain of 5.94% and the S&P 500's gain of 2.57%.
Analysts and investors alike will be keeping a close eye on the performance of Dropbox in its upcoming earnings disclosure. In that report, analysts expect Dropbox to post earnings of $0.64 per share. This would mark year-over-year growth of 6.67%. Simultaneously, our latest consensus estimate expects the revenue to be $621.66 million, showing a 2.68% drop compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.68 per share and revenue of $2.49 billion, indicating changes of +7.63% and -2.24%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Dropbox. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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 remained steady. Dropbox presently features a Zacks Rank of #2 (Buy).
Investors should also note Dropbox's current valuation metrics, including its Forward P/E ratio of 11.99. This signifies a discount in comparison to the average Forward P/E of 25.17 for its industry.
It's also important to note that DBX currently trades at a PEG ratio of 2.83. 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. Internet - Services stocks are, on average, holding a PEG ratio of 1.69 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 100, putting it in the top 41% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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