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Dropbox (DBX) Gains But Lags Market: What You Should Know
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Dropbox (DBX - Free Report) closed at $22.81 in the latest trading session, marking a +0.57% move from the prior day. This change lagged the S&P 500's 0.75% gain on the day. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq gained 10.36%.
Coming into today, shares of the online file-sharing company had gained 1.61% in the past month. In that same time, the Computer and Technology sector lost 8.72%, while the S&P 500 lost 5.98%.
Dropbox will be looking to display strength as it nears its next earnings release. On that day, Dropbox is projected to report earnings of $0.39 per share, which would represent a year-over-year decline of 4.88%. Meanwhile, our latest consensus estimate is calling for revenue of $593.8 million, up 5% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for Dropbox. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Dropbox is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Dropbox is holding a Forward P/E ratio of 13.11. This valuation marks a discount compared to its industry's average Forward P/E of 19.87.
It is also worth noting that DBX currently has a PEG ratio of 1.55. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Services was holding an average PEG ratio of 1.57 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Dropbox (DBX) Gains But Lags Market: What You Should Know
Dropbox (DBX - Free Report) closed at $22.81 in the latest trading session, marking a +0.57% move from the prior day. This change lagged the S&P 500's 0.75% gain on the day. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq gained 10.36%.
Coming into today, shares of the online file-sharing company had gained 1.61% in the past month. In that same time, the Computer and Technology sector lost 8.72%, while the S&P 500 lost 5.98%.
Dropbox will be looking to display strength as it nears its next earnings release. On that day, Dropbox is projected to report earnings of $0.39 per share, which would represent a year-over-year decline of 4.88%. Meanwhile, our latest consensus estimate is calling for revenue of $593.8 million, up 5% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for Dropbox. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Dropbox is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Dropbox is holding a Forward P/E ratio of 13.11. This valuation marks a discount compared to its industry's average Forward P/E of 19.87.
It is also worth noting that DBX currently has a PEG ratio of 1.55. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Services was holding an average PEG ratio of 1.57 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 39% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.