Dropbox DBX shares ended the last trading session 5.6% higher at $22.13. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 9.5% loss over the past four weeks.
Dropbox has been benefiting from an expanding user base and strong average revenue per paying user (ARPU) growth.
This online file-sharing company is expected to post quarterly earnings of $0.52 per share in its upcoming report, which represents a year-over-year change of +2%. Revenues are expected to be $629.65 million, up 1.2% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Dropbox, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on DBX going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Dropbox belongs to the Zacks Internet - Services industry. Another stock from the same industry, HealthStream HSTM, closed the last trading session 0.4% higher at $27.70. Over the past month, HSTM has returned 2.2%.
For HealthStream
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Analysts may be seriously underestimating these stocks. When they announce earnings, they could immediately jump +10-20%.
See Stocks Now >>Dropbox, Inc. (DBX) : Free Stock Analysis Report
HealthStream, Inc. (HSTM) : Free Stock Analysis Report
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