In the latest trading session, Dropbox (DBX) closed at $29.41, marking a +2.01% move from the previous day. This move outpaced the S&P 500's daily gain of 0.81%. Elsewhere, the Dow saw an upswing of 0.27%, while the tech-heavy Nasdaq appreciated by 1.3%.
Shares of the online file-sharing company witnessed a gain of 4.27% over the previous month, beating the performance of the Computer and Technology sector with its loss of 1.59%, and the S&P 500's gain of 1.13%.
Market participants will be closely following the financial results of Dropbox in its upcoming release. The company is expected to report EPS of $0.74, up 4.23% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $625.6 million, down 0.02% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.08 per share and revenue of $2.5 billion, indicating changes of +8.45% and -0.65%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Dropbox. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Dropbox boasts a Zacks Rank of #3 (Hold).
In the context of valuation, Dropbox is at present trading with a Forward P/E ratio of 9.36. This valuation marks a discount compared to its industry average Forward P/E of 16.4.
Investors should also note that DBX has a PEG ratio of 2.14 right now. 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 1.66 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 158, positioning it in the bottom 36% 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.
Be sure to follow all of these stock-moving metrics, and many 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).