Dropbox (DBX) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Dropbox (DBX) closed at $23.91, marking a -0.99% move from the previous day. This change lagged the S&P 500's 0.04% loss on the day. At the same time, the Dow added 0.2%, and the tech-heavy Nasdaq lost 0.25%.
Heading into today, shares of the online file-sharing company had gained 6.3% over the past month, lagging the Computer and Technology sector's gain of 7.76% and outpacing the S&P 500's gain of 2.37% in that time.
Investors will be hoping for strength from DBX as it approaches its next earnings release, which is expected to be February 18, 2021. In that report, analysts expect DBX to post earnings of $0.23 per share. This would mark year-over-year growth of 43.75%. Our most recent consensus estimate is calling for quarterly revenue of $498.12 million, up 11.69% from the year-ago period.
Any recent changes to analyst estimates for DBX should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 11.51% higher. 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 24.7 right now. For comparison, its industry has an average Forward P/E of 38.92, which means DBX is trading at a discount to the group.
Meanwhile, DBX's PEG ratio is currently 0.6. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Services industry currently had an average PEG ratio of 2.94 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 33% 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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Dropbox, Inc. (DBX) : Free Stock Analysis Report
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