Dropbox (DBX) ended the recent trading session at $25.11, demonstrating a -2.14% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.84%. On the other hand, the Dow registered a loss of 0.34%, and the technology-centric Nasdaq decreased by 1.43%.
Prior to today's trading, shares of the online file-sharing company had lost 4.82% lagged the Computer and Technology sector's gain of 1.75% and the S&P 500's gain of 1.8%.
The investment community will be closely monitoring the performance of Dropbox in its forthcoming earnings report. The company is scheduled to release its earnings on February 19, 2026. In that report, analysts expect Dropbox to post earnings of $0.66 per share. This would mark a year-over-year decline of 9.59%. Meanwhile, our latest consensus estimate is calling for revenue of $627.51 million, down 2.5% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.82 per share and a revenue of $2.51 billion, representing changes of +13.25% and 0%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Dropbox. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Dropbox is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Dropbox is currently trading at a Forward P/E ratio of 8.39. Its industry sports an average Forward P/E of 16.93, so one might conclude that Dropbox is trading at a discount comparatively.
Investors should also note that DBX has a PEG ratio of 1.36 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.94.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 163, positioning it in the bottom 34% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.
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Dropbox, Inc. (DBX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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