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Dropbox (DBX) closed the latest trading day at $29.74, indicating a +0.54% change from the previous session's end. This move outpaced the S&P 500's daily gain of 0.16%. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, lost 0.06%.
Coming into today, shares of the online file-sharing company had lost 1% in the past month. In that same time, the Computer and Technology sector lost 0.39%, while the S&P 500 lost 2.7%.
Investors will be eagerly watching for the performance of Dropbox in its upcoming earnings disclosure. On that day, Dropbox is projected to report earnings of $0.62 per share, which would represent year-over-year growth of 24%. Meanwhile, our latest consensus estimate is calling for revenue of $638.53 million, up 0.56% from the prior-year quarter.
Investors should also pay attention to any latest changes in analyst estimates for Dropbox. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Dropbox is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Dropbox has a Forward P/E ratio of 11.34 right now. Its industry sports an average Forward P/E of 21.96, so one might conclude that Dropbox is trading at a discount comparatively.
We can also see that DBX currently has a PEG ratio of 0.95. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. DBX's industry had an average PEG ratio of 1.57 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 64, positioning it in the top 26% of all 250+ industries.
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.