Dropbox (DBX) closed the most recent trading day at $23.30, moving +1.3% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.57%. Elsewhere, the Dow lost 0.8%, while the tech-heavy Nasdaq added 0.03%.
Investors will be hoping for strength from DBX as it approaches its next earnings release. The company is expected to report EPS of $0.17, up 70% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $464.68 million, up 15.74% from the year-ago period.
DBX's full-year Zacks Consensus Estimates are calling for earnings of $0.73 per share and revenue of $1.89 billion. These results would represent year-over-year changes of +46% and +13.68%, respectively.
Investors should also note any recent changes to analyst estimates for DBX. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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 remained stagnant. DBX is currently a Zacks Rank #1 (Strong Buy).
Valuation is also important, so investors should note that DBX has a Forward P/E ratio of 31.33 right now. For comparison, its industry has an average Forward P/E of 32.47, which means DBX is trading at a discount to the group.
Meanwhile, DBX's PEG ratio is currently 0.96. 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. Internet - Services stocks are, on average, holding a PEG ratio of 2.71 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 69, which puts it in the top 28% 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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