Dropbox (DBX) closed at $25.79 in the latest trading session, marking a -1.86% move from the prior day. This move lagged the S&P 500's daily loss of 0.92%. On the other hand, the Dow registered a loss of 0.96%, and the technology-centric Nasdaq decreased by 1.6%.
The online file-sharing company's shares have seen an increase of 5.42% over the last month, surpassing the Computer and Technology sector's gain of 3.64% and the S&P 500's gain of 2.68%.
The investment community will be paying close attention to the earnings performance of Dropbox in its upcoming release. The company is slated to reveal its earnings on November 7, 2024. The company's upcoming EPS is projected at $0.52, signifying a 7.14% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $636.93 million, reflecting a 0.62% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $2.22 per share and a revenue of $2.54 billion, demonstrating changes of +12.12% and +1.73%, respectively, from the preceding year.
Investors might also notice 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 company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Dropbox is carrying a Zacks Rank of #3 (Hold).
Investors should also note Dropbox's current valuation metrics, including its Forward P/E ratio of 11.84. This valuation marks a discount compared to its industry's average Forward P/E of 39.16.
One should further note that DBX currently holds a PEG ratio of 0.97. 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 was holding an average PEG ratio of 2.32 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
