Dropbox (DBX) closed at $28.00 in the latest trading session, marking a +1.63% move from the prior day. This move outpaced the S&P 500's daily gain of 0.83%. Elsewhere, the Dow saw an upswing of 0.77%, while the tech-heavy Nasdaq appreciated by 1.02%.
Shares of the online file-sharing company have depreciated by 5.65% over the course of the past month, underperforming the Computer and Technology sector's gain of 8.25%, and the S&P 500's gain of 4.99%.
Investors will be eagerly watching for the performance of Dropbox in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.63, indicating a 5% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $617.77 million, reflecting a 2.64% fall from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.61 per share and a revenue of $2.48 billion, signifying shifts of +4.82% and -2.57%, respectively, from the last year.
Any recent changes to analyst estimates for Dropbox should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Dropbox holds a Zacks Rank of #3 (Hold).
Digging into valuation, Dropbox currently has a Forward P/E ratio of 10.55. Its industry sports an average Forward P/E of 20.77, so one might conclude that Dropbox is trading at a discount comparatively.
Meanwhile, DBX's PEG ratio is currently 7.27. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Services industry currently had an average PEG ratio of 1.49 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 161, finds itself in the bottom 35% echelons 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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