Yahoo Finance Dropbox (DBX) Ascends While Market Falls: Some Facts to Note
The most recent trading session ended with Dropbox (DBX) standing at $21.23, reflecting a +1.48% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily loss of 0.04%. At the same time, the Dow lost 0.15%, and the tech-heavy Nasdaq gained 0.12%.
The the stock of online file-sharing company has fallen by 12.69% in the past month, lagging the Computer and Technology sector's loss of 2.27% and the S&P 500's gain of 4.15%.
The investment community will be paying close attention to the earnings performance of Dropbox in its upcoming release. The company's earnings per share (EPS) are projected to be $0.52, reflecting a 1.96% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $629.65 million, up 1.15% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.12 per share and a revenue of $2.54 billion, indicating changes of +7.07% and +1.66%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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 company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Dropbox possesses a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Dropbox has a Forward P/E ratio of 9.87 right now. This denotes a discount relative to the industry's average Forward P/E of 22.58.
One should further note that DBX currently holds a PEG ratio of 0.86. 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. As the market closed yesterday, the Internet - Services industry was having an average PEG ratio of 2.1.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 91, this industry ranks in the top 37% of all industries, numbering over 250.
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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Dropbox, Inc. (DBX) : Free Stock Analysis Report
