Dropbox (DBX) ended the recent trading session at $28.40, demonstrating a -3.04% change from the preceding day's closing price. At the same time, the Dow lost 0.16%, and the tech-heavy Nasdaq gained 0.55%.
The stock of online file-sharing company has fallen by 3.05% in the past month, lagging the Computer and Technology sector's gain of 6.92% and the S&P 500's gain of 3.83%.
The investment community will be paying close attention to the earnings performance of Dropbox in its upcoming release. The company is slated to reveal its earnings on November 6, 2025. The company is forecasted to report an EPS of $0.64, showcasing a 6.67% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $623.49 million, indicating a 2.4% decrease compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.69 per share and revenue of $2.5 billion, indicating changes of +8.03% and -2.09%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Dropbox. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.37% higher. Dropbox currently has a Zacks Rank of #3 (Hold).
Investors should also note Dropbox's current valuation metrics, including its Forward P/E ratio of 10.89. This denotes a discount relative to the industry average Forward P/E of 26.45.
We can also see that DBX currently has a PEG ratio of 2.57. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Services industry had an average PEG ratio of 1.81 as trading concluded yesterday.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 142, placing it within the bottom 43% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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