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Dropbox (DBX) closed the most recent trading day at $21.94, moving -1.04% from the previous trading session. This move lagged the S&P 500's daily gain of 0.03%. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq added 0.55%.
Prior to today's trading, shares of the online file-sharing company had lost 9.91% over the past month. This has lagged the Computer and Technology sector's gain of 5.24% and the S&P 500's gain of 3.99% in that time.
DBX will be looking to display strength as it nears its next earnings release. On that day, DBX is projected to report earnings of $0.23 per share, which would represent year-over-year growth of 43.75%. Meanwhile, our latest consensus estimate is calling for revenue of $498.12 million, up 11.69% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for DBX. 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.
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 has moved 11.51% higher. DBX is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, DBX is currently trading at a Forward P/E ratio of 22.06. Its industry sports an average Forward P/E of 32.58, 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 0.54. 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. Internet - Services stocks are, on average, holding a PEG ratio of 1.78 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 122, which puts it in the top 48% 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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