Here's Why Dropbox (DBX) is a Strong Value Stock

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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.

Dropbox (DBX)

Dropbox offers a cloud-based platform that businesses and individuals can create, access and share digital content globally. It serves more than 700 million registered users across approximately 180 countries.

DBX boasts a Value Style Score of B and VGM Score of A, and holds a Zacks Rank #2 (Buy) rating. Shares of Dropbox are trading at a forward earnings multiple of 11.3X, as well as a PEG Ratio of 1, a Price/Cash Flow ratio of 12.5X, and a Price/Sales ratio of 3.3X.

A company's earnings performance is important for value investors as well. For fiscal 2025, one analyst revised their earnings estimate higher in the last 60 days for DBX, while the Zacks Consensus Estimate has increased $0.07 to $2.61 per share. DBX also holds an average earnings surprise of 15.4%.

DBX should be on investors' short lists because of its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.

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Dropbox, Inc. (DBX) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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