In the latest trading session, Dropbox (DBX) closed at $27.24, marking a +0.41% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.16%. Meanwhile, the Dow experienced a rise of 0.01%, and the technology-dominated Nasdaq saw an increase of 0.46%.
Heading into today, shares of the online file-sharing company had gained 3.31% over the past month, outpacing the Computer and Technology sector's loss of 5.94% and the S&P 500's loss of 3.59% in that time.
The investment community will be closely monitoring the performance of Dropbox in its forthcoming earnings report. On that day, Dropbox is projected to report earnings of $0.62 per share, which would represent year-over-year growth of 6.9%. Our most recent consensus estimate is calling for quarterly revenue of $619.06 million, down 1.94% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $2.54 per share and a revenue of $2.47 billion, demonstrating changes of +2.01% and -2.9%, 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. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. The Zacks Consensus EPS estimate has moved 0.19% higher within the past month. Dropbox presently features a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Dropbox is presently being traded at a Forward P/E ratio of 10.67. Its industry sports an average Forward P/E of 20.69, so one might conclude that Dropbox is trading at a discount comparatively.
Meanwhile, DBX's PEG ratio is currently 0.93. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Services industry had an average PEG ratio of 1.35 as trading concluded yesterday.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 151, positioning it in the bottom 40% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>Dropbox, Inc. (DBX) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
