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Dropbox (DBX) closed the latest trading day at $30.40, indicating a +1.03% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 1.83%. Elsewhere, the Dow saw an upswing of 1.65%, while the tech-heavy Nasdaq appreciated by 2.45%.
Shares of the online file-sharing company have depreciated by 2.31% over the course of the past month, outperforming the Computer and Technology sector's loss of 3.84% and the S&P 500's loss of 3.31%.
Market participants will be closely following the financial results of Dropbox in its upcoming release. The company is expected to report EPS of $0.62, up 24% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $638.53 million, up 0.56% from the year-ago period.
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. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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. Currently, Dropbox is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Dropbox is presently being traded at a Forward P/E ratio of 11.47. This valuation marks a discount compared to its industry's average Forward P/E of 21.4.
Meanwhile, DBX's PEG ratio is currently 0.96. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Internet - Services industry was having an average PEG ratio of 1.51.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 56, this industry ranks in the top 23% 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.