Dropbox (DBX) closed at $27.99 in the latest trading session, marking a -1.93% move from the prior day. This change lagged the S&P 500's 0.8% gain on the day. Elsewhere, the Dow gained 0.94%, while the tech-heavy Nasdaq added 0.97%.
Prior to today's trading, shares of the online file-sharing company had lost 0.42% lagged the Computer and Technology sector's gain of 8.5% and the S&P 500's gain of 5.12%.
Analysts and investors alike will be keeping a close eye on the performance of Dropbox in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.63, showcasing a 5% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $617.77 million, down 2.64% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $2.61 per share and a revenue of $2.48 billion, representing changes of +4.82% and -2.57%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Dropbox. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Dropbox is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Dropbox is currently trading at a Forward P/E ratio of 10.92. For comparison, its industry has an average Forward P/E of 19.25, which means Dropbox is trading at a discount to the group.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 151, putting it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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Dropbox, Inc. (DBX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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