Dropbox (DBX) ended the recent trading session at $22.71, demonstrating a +2.96% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 1.02% for the day. At the same time, the Dow added 0.63%, and the tech-heavy Nasdaq gained 1.23%.
Shares of the online file-sharing company witnessed a loss of 14.33% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 1.17%, and the S&P 500's gain of 0.63%.
Investors will be eagerly watching for the performance of Dropbox in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.71, indicating a 1.43% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $619.51 million, indicating a 0.83% decrease compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.05 per share and revenue of $2.49 billion. These totals would mark changes of +7.39% and -1.13%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Dropbox. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Dropbox is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Dropbox is at present trading with a Forward P/E ratio of 7.23. This denotes a discount relative to the industry average Forward P/E of 13.31.
It's also important to note that DBX currently trades at a PEG ratio of 1.03. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DBX's industry had an average PEG ratio of 1.95 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 151, which puts it in the bottom 39% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Dropbox, Inc. (DBX): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).