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In the latest market close, Dropbox (DBX) reached $31.48, with a +1.16% movement compared to the previous day. The stock outpaced the S&P 500's daily loss of 0.29%. At the same time, the Dow lost 0.32%, and the tech-heavy Nasdaq lost 0.5%.
The online file-sharing company's shares have seen an increase of 1.2% over the last month, not keeping up with the Computer and Technology sector's gain of 1.8% and the S&P 500's gain of 2.52%.
Market participants will be closely following the financial results of Dropbox in its upcoming release. The company is predicted to post an EPS of $0.62, indicating a 24% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $638.53 million, up 0.56% from the year-ago period.
Investors should also note any recent changes to analyst estimates for Dropbox. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Dropbox is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Dropbox is holding a Forward P/E ratio of 11.87. This denotes a discount relative to the industry's average Forward P/E of 23.55.
Meanwhile, DBX's PEG ratio is currently 0.99. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.58.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 73, placing it within the top 30% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.