U.S. Markets closed
  • S&P Futures

    3,655.25
    +32.00 (+0.88%)
     
  • Dow Futures

    29,881.00
    +252.00 (+0.85%)
     
  • Nasdaq Futures

    12,383.00
    +106.00 (+0.86%)
     
  • Russell 2000 Futures

    1,841.70
    +21.60 (+1.19%)
     
  • Crude Oil

    44.96
    -0.38 (-0.84%)
     
  • Gold

    1,783.70
    +8.00 (+0.45%)
     
  • Silver

    22.95
    +0.36 (+1.60%)
     
  • EUR/USD

    1.1962
    +0.0027 (+0.2273%)
     
  • 10-Yr Bond

    0.8440
    +0.0020 (+0.24%)
     
  • Vix

    20.57
    -0.27 (-1.30%)
     
  • GBP/USD

    1.3361
    +0.0029 (+0.2191%)
     
  • USD/JPY

    104.4310
    +0.1070 (+0.1026%)
     
  • BTC-USD

    19,465.43
    -44.45 (-0.23%)
     
  • CMC Crypto 200

    382.19
    +17.59 (+4.82%)
     
  • FTSE 100

    6,266.19
    -101.39 (-1.59%)
     
  • Nikkei 225

    26,830.37
    +396.75 (+1.50%)
     

Why Dropbox (DBX) Could Be an Impressive Growth Stock

Zacks Equity Research
·2 min read

Growth stocks can be some of the most exciting picks in the market, as these high-flyers can captivate investors’ attention, and produce big gains as well. However, they can also lead on the downside when the growth story is over, so it is important to find companies which are still seeing strong growth prospects in their businesses.

One such company that might be well-positioned for future earnings growth is Dropbox, Inc. DBX. This firm, which is in the Internet - Services industry, saw EPS growth of 21.9% last year, and is looking great for this year too.

In fact, the current growth estimate for this year calls for earnings-per-share growth of 53.2%. Furthermore, the long-term growth rate is currently an impressive 34.4%, suggesting pretty good prospects for the long haul.

Dropbox, Inc. Price and Consensus

Dropbox, Inc. Price and Consensus
Dropbox, Inc. Price and Consensus

Dropbox, Inc. price-consensus-chart | Dropbox, Inc. Quote

And if this wasn’t enough, the stock has actually seen estimates rise over the past month for the current fiscal year by about 3.5%. Thanks to this rise in earnings estimates, DBX has a Zacks Rank #2 (Buy) which further underscores the potential for outperformance in this company. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

So if you are looking for a fast growing stock that is still seeing plenty of opportunities on the horizon, make sure to consider DBX. Not only does it have double-digit earnings growth prospects, but its impressive Zacks Rank suggests that analysts believe better days are ahead for DBX as well.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through Q2 2020, while the S&P 500 gained an impressive +44.0%, five of our strategies returned +50.9%, +93.8%, +122.2%, +153.0%, and even +156.8%.

This outperformance has not just been a recent phenomenon. From 2000 – Q2 2020, while the S&P averaged +5.5% per year, our top strategies averaged up to +51.7% per year.

See their latest picks free >>


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