Back to top

Image: Bigstock

Is Dropbox (DBX) Stock Outpacing Its Computer and Technology Peers This Year?

Read MoreHide Full Article

For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Dropbox (DBX - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? One simple way to answer this question is to take a look at the year-to-date performance of DBX and the rest of the Computer and Technology group's stocks.

Dropbox is a member of the Computer and Technology sector. This group includes 604 individual stocks and currently holds a Zacks Sector Rank of #7. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. DBX is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for DBX's full-year earnings has moved 129.41% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.

Our latest available data shows that DBX has returned about 18.20% since the start of the calendar year. Meanwhile, the Computer and Technology sector has returned an average of 15.32% on a year-to-date basis. As we can see, Dropbox is performing better than its sector in the calendar year.

Breaking things down more, DBX is a member of the Internet - Services industry, which includes 47 individual companies and currently sits at #117 in the Zacks Industry Rank. On average, this group has gained an average of 28.18% so far this year, meaning that DBX is slightly underperforming its industry in terms of year-to-date returns.

Investors in the Computer and Technology sector will want to keep a close eye on DBX as it attempts to continue its solid performance.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Dropbox, Inc. (DBX) - free report >>

Published in