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Box (BOX) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
·3 min read

Box (BOX) closed the most recent trading day at $16.92, moving -0.82% from the previous trading session. This change lagged the S&P 500's 0.03% loss on the day. Elsewhere, the Dow lost 0.24%, while the tech-heavy Nasdaq added 0.04%.

Prior to today's trading, shares of the online storage provider had lost 3.78% over the past month. This has lagged the Computer and Technology sector's gain of 6.07% and the S&P 500's gain of 3.1% in that time.

Investors will be hoping for strength from BOX as it approaches its next earnings release, which is expected to be December 1, 2020. On that day, BOX is projected to report earnings of $0.14 per share, which would represent year-over-year growth of 1500%. Meanwhile, our latest consensus estimate is calling for revenue of $194.04 million, up 9.53% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.58 per share and revenue of $768.72 million, which would represent changes of +1833.33% and +10.41%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for BOX. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. BOX is currently a Zacks Rank #3 (Hold).

Looking at its valuation, BOX is holding a Forward P/E ratio of 29.5. Its industry sports an average Forward P/E of 88.89, so we one might conclude that BOX is trading at a discount comparatively.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 186, putting it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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Zacks Investment Research