U.S. markets open in 8 hours 17 minutes
  • S&P Futures

    -22.75 (-0.49%)
  • Dow Futures

    -67.00 (-0.19%)
  • Nasdaq Futures

    -169.25 (-1.09%)
  • Russell 2000 Futures

    -7.70 (-0.36%)
  • Crude Oil

    +1.33 (+1.59%)
  • Gold

    -1.90 (-0.10%)
  • Silver

    +0.01 (+0.05%)

    -0.0010 (-0.09%)
  • 10-Yr Bond

    0.0000 (0.00%)
  • Vix

    -1.12 (-5.51%)

    -0.0009 (-0.06%)

    +0.2680 (+0.23%)

    -507.45 (-1.19%)
  • CMC Crypto 200

    -14.44 (-1.41%)
  • FTSE 100

    +68.28 (+0.91%)
  • Nikkei 225

    -51.24 (-0.18%)

Dropbox (DBX) Gains But Lags Market: What You Should Know

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

In the latest trading session, Dropbox (DBX) closed at $25.85, marking a +0.51% move from the previous day. This change lagged the S&P 500's 0.93% gain on the day.

Prior to today's trading, shares of the online file-sharing company had lost 4.39% over the past month. This has lagged the Computer and Technology sector's gain of 8.56% and the S&P 500's gain of 5.84% in that time.

Wall Street will be looking for positivity from DBX as it approaches its next earnings report date. This is expected to be May 6, 2021. The company is expected to report EPS of $0.30, up 76.47% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $505.01 million, up 10.99% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.25 per share and revenue of $2.1 billion, which would represent changes of +34.41% and +9.93%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for DBX. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. DBX is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, DBX is currently trading at a Forward P/E ratio of 20.84. Its industry sports an average Forward P/E of 31.49, so we one might conclude that DBX is trading at a discount comparatively.

We can also see that DBX currently has a PEG ratio of 0.51. 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. DBX's industry had an average PEG ratio of 1.88 as of yesterday's close.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 192, putting it in the bottom 25% 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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dropbox, Inc. (DBX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research