Dropbox (DBX) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Dropbox (DBX) closed at $22.56, marking a +1.3% move from the previous day. This change outpaced the S&P 500's 1.24% gain on the day. Elsewhere, the Dow gained 0.61%, while the tech-heavy Nasdaq added 1.35%.
Heading into today, shares of the online file-sharing company had gained 2.3% over the past month, lagging the Computer and Technology sector's gain of 6.24% and the S&P 500's gain of 7.09% in that time.
DBX will be looking to display strength as it nears its next earnings release, which is expected to be August 6, 2020. On that day, DBX is projected to report earnings of $0.17 per share, which would represent year-over-year growth of 70%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $464.68 million, up 15.74% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.74 per share and revenue of $1.89 billion, which would represent changes of +48% and +13.68%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for DBX. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection remained stagnant. DBX is currently a Zacks Rank #1 (Strong Buy).
In terms of valuation, DBX is currently trading at a Forward P/E ratio of 30.09. Its industry sports an average Forward P/E of 33.17, so we one might conclude that DBX is trading at a discount comparatively.
Also, we should mention that DBX has a PEG ratio of 0.93. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DBX's industry had an average PEG ratio of 2.44 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 118, putting it in the top 47% 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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