Dropbox (DBX) closed the most recent trading day at $27.30, moving +1.15% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.34%. Elsewhere, the Dow saw a downswing of 0.94%, while the tech-heavy Nasdaq appreciated by 0.16%.
Shares of the online file-sharing company witnessed a loss of 8.26% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 1%, and the S&P 500's gain of 1.19%.
Analysts and investors alike will be keeping a close eye on the performance of Dropbox in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.66, signifying a 9.59% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $627.51 million, showing a 2.5% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $2.82 per share and a revenue of $2.51 billion, demonstrating changes of +13.25% and 0%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Dropbox. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Dropbox presently features a Zacks Rank of #3 (Hold).
Digging into valuation, Dropbox currently has a Forward P/E ratio of 8.82. This indicates a discount in contrast to its industry's Forward P/E of 17.8.
We can also see that DBX currently has a PEG ratio of 1.43. 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. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.71.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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Dropbox, Inc. (DBX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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