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Dropbox (DBX) Exceeds Market Returns: Some Facts to Consider
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Dropbox (DBX - Free Report) closed at $25.81 in the latest trading session, marking a +1.3% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.71%. Elsewhere, the Dow gained 1.03%, while the tech-heavy Nasdaq added 0.6%.
Heading into today, shares of the online file-sharing company had gained 8.98% over the past month, lagging the Computer and Technology sector's gain of 9.96% and outpacing the S&P 500's gain of 6.41% in that time.
The investment community will be paying close attention to the earnings performance of Dropbox in its upcoming release. The company is predicted to post an EPS of $0.52, indicating a 7.14% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $636.93 million, indicating a 0.62% growth compared to the corresponding quarter of the prior year.
DBX's full-year Zacks Consensus Estimates are calling for earnings of $2.22 per share and revenue of $2.54 billion. These results would represent year-over-year changes of +12.12% and +1.73%, respectively.
Any recent changes to analyst estimates for Dropbox should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. 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 11.48 right now. This indicates a discount in contrast to its industry's Forward P/E of 33.93.
One should further note that DBX currently holds a PEG ratio of 0.94. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Services was holding an average PEG ratio of 2.23 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 101, this industry ranks in the top 41% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Dropbox (DBX) Exceeds Market Returns: Some Facts to Consider
Dropbox (DBX - Free Report) closed at $25.81 in the latest trading session, marking a +1.3% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.71%. Elsewhere, the Dow gained 1.03%, while the tech-heavy Nasdaq added 0.6%.
Heading into today, shares of the online file-sharing company had gained 8.98% over the past month, lagging the Computer and Technology sector's gain of 9.96% and outpacing the S&P 500's gain of 6.41% in that time.
The investment community will be paying close attention to the earnings performance of Dropbox in its upcoming release. The company is predicted to post an EPS of $0.52, indicating a 7.14% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $636.93 million, indicating a 0.62% growth compared to the corresponding quarter of the prior year.
DBX's full-year Zacks Consensus Estimates are calling for earnings of $2.22 per share and revenue of $2.54 billion. These results would represent year-over-year changes of +12.12% and +1.73%, respectively.
Any recent changes to analyst estimates for Dropbox should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. 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 11.48 right now. This indicates a discount in contrast to its industry's Forward P/E of 33.93.
One should further note that DBX currently holds a PEG ratio of 0.94. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Services was holding an average PEG ratio of 2.23 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 101, this industry ranks in the top 41% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.