In the latest close session, Dropbox (DBX) was up +1.27% at $30.35. The stock exceeded the S&P 500, which registered a gain of 0.38% for the day. Elsewhere, the Dow gained 0.29%, while the tech-heavy Nasdaq added 0.62%.
Coming into today, shares of the online file-sharing company had gained 9.78% in the past month. In that same time, the Computer and Technology sector lost 0.53%, while the S&P 500 gained 1.61%.
Investors will be eagerly watching for the performance of Dropbox in its upcoming earnings disclosure. In that report, analysts expect Dropbox to post earnings of $0.74 per share. This would mark year-over-year growth of 4.23%. In the meantime, our current consensus estimate forecasts the revenue to be $625.6 million, indicating a 0.02% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.08 per share and revenue of $2.5 billion, which would represent changes of +8.45% and -0.65%, respectively, from the prior year.
Any recent changes to analyst estimates for Dropbox should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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 remained stagnant. Currently, Dropbox is carrying a Zacks Rank of #3 (Hold).
Investors should also note Dropbox's current valuation metrics, including its Forward P/E ratio of 9.73. This represents a discount compared to its industry average Forward P/E of 17.16.
It's also important to note that DBX currently trades at a PEG ratio of 2.22. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Services stocks are, on average, holding a PEG ratio of 1.55 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 94, finds itself in the top 39% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the 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).