Dropbox (DBX) closed the most recent trading day at $29.21, moving -0.88% from the previous trading session. This change lagged the S&P 500's daily loss of 0.04%.
Prior to today's trading, shares of the online file-sharing company had gained 11.71% over the past month. This has outpaced the Computer and Technology sector's gain of 6.01% and the S&P 500's gain of 1.35% in that time.
Wall Street will be looking for positivity from DBX as it approaches its next earnings report date. The company is expected to report EPS of $0.33, up 50% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $524 million, up 12.11% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.33 per share and revenue of $2.12 billion. These totals would mark changes of +43.01% and +10.99%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for DBX. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. DBX is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that DBX has a Forward P/E ratio of 22.23 right now. This valuation marks a discount compared to its industry's average Forward P/E of 28.44.
It is also worth noting that DBX currently has a PEG ratio of 0.54. 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 2.04 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 177, which puts it in the bottom 31% 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.
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