Dropbox (DBX) closed at $21.42 in the latest trading session, marking a -0.83% move from the prior day. This change lagged the S&P 500's 0.11% loss on the day. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, lost 0.23%.
Shares of the online file-sharing company witnessed a loss of 6.66% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 6.52% and the S&P 500's gain of 3.51%.
Market participants will be closely following the financial results of Dropbox in its upcoming release. The company's earnings per share (EPS) are projected to be $0.52, reflecting a 1.96% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $629.65 million, indicating a 1.15% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $2.12 per share and a revenue of $2.54 billion, demonstrating changes of +7.07% and +1.66%, respectively, from the preceding year.
Any recent changes to analyst estimates for Dropbox should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 10.2% rise in the Zacks Consensus EPS estimate. Right now, Dropbox possesses a Zacks Rank of #1 (Strong Buy).
In the context of valuation, Dropbox is at present trading with a Forward P/E ratio of 10.19. For comparison, its industry has an average Forward P/E of 22.8, which means Dropbox is trading at a discount to the group.
It's also important to note that DBX currently trades at a PEG ratio of 0.89. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Services was holding an average PEG ratio of 2.01 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 85, finds itself in the top 34% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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