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In the latest trading session, Dropbox (DBX) closed at $26.67, marking a -1.62% move from the previous day. The stock's change was more than the S&P 500's daily loss of 2.36%. Elsewhere, the Dow saw a downswing of 2.48%, while the tech-heavy Nasdaq depreciated by 2.55%.
Shares of the online file-sharing company have appreciated by 2.3% over the course of the past month, outperforming the Computer and Technology sector's loss of 8.4% and the S&P 500's loss of 5.6%.
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 6.9% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $619.06 million, down 1.94% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.54 per share and a revenue of $2.47 billion, signifying shifts of +2.01% and -2.9%, respectively, from the last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Dropbox. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Dropbox currently has a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, Dropbox is currently exchanging hands at a Forward P/E ratio of 10.66. Its industry sports an average Forward P/E of 17.47, so one might conclude that Dropbox is trading at a discount comparatively.
One should further note that DBX currently holds a PEG ratio of 0.93. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Internet - Services industry was having an average PEG ratio of 1.2.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 148, finds itself in the bottom 41% echelons of all 250+ industries.