Here's Why Dropbox (DBX) is a Strong Growth Stock
In This Article:
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
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 This 1 Growth Stock Should Be On Your Watchlist
For growth investors, a company's financial strength, overall health, and future outlook take precedence, so they'll want to zero in on the Growth Style Score. This Score examines things like projected and historical earnings, sales, and cash flow to find stocks that will generate sustainable growth over time.
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 is a Zacks Rank #3 (Hold) stock, with a Growth Style Score of A and VGM Score of A. Earnings are expected to grow 4.8% year-over-year for the current fiscal year, with sales growth of 2.6%.
Advertisement: High Yield Savings Offers
Two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.07 to $2.61 per share for 2025. DBX boasts an average earnings surprise of 15.4%.
Looking at cash flow, Dropbox is expected to report cash flow growth of 16.2% this year; DBX has generated cash flow growth of 29.5% over the past three to five years.
With solid fundamentals, a good Zacks Rank, and top-tier Growth and VGM Style Scores, DBX should be on investors' short lists.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Dropbox, Inc. (DBX) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).