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Dropbox (DBX) ended the recent trading session at $27.47, demonstrating a +1.07% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.67%. On the other hand, the Dow registered a gain of 0.56%, and the technology-centric Nasdaq increased by 0.87%.
The the stock of online file-sharing company has risen by 3.27% in the past month, leading the Computer and Technology sector's loss of 7.99% and the S&P 500's loss of 5.28%.
The investment community will be closely monitoring the performance of Dropbox in its forthcoming earnings report. The company is predicted to post an EPS of $0.62, indicating a 6.9% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $619.06 million, down 1.94% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.54 per share and revenue of $2.47 billion, indicating changes of +2.01% and -2.9%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Dropbox. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, Dropbox is carrying a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Dropbox is currently being traded at a Forward P/E ratio of 10.69. This valuation marks a discount compared to its industry's average Forward P/E of 25.03.
We can also see that DBX currently has a PEG ratio of 0.93. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Services industry had an average PEG ratio of 1.32 as trading concluded yesterday.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 140, which puts it in the bottom 44% of all 250+ industries.