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Dropbox (DBX) Stock Drops Despite Market Gains: Important Facts to Note
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Dropbox (DBX - Free Report) closed the most recent trading day at $26.14, moving -0.49% from the previous trading session. This change lagged the S&P 500's 0.47% gain on the day. Elsewhere, the Dow gained 0.79%, while the tech-heavy Nasdaq added 0.28%.
The the stock of online file-sharing company has risen by 6.66% in the past month, leading the Computer and Technology sector's gain of 3.88% and the S&P 500's gain of 3.48%.
The investment community will be paying close attention to the earnings performance of Dropbox in its upcoming release. The company's earnings per share (EPS) are projected to be $0.52, reflecting a 7.14% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $636.93 million, up 0.62% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.22 per share and revenue of $2.54 billion, indicating changes of +12.12% and +1.73%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Dropbox. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering 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 holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Dropbox is at present trading with a Forward P/E ratio of 11.83. This expresses a discount compared to the average Forward P/E of 37.19 of its industry.
It's also important to note that DBX currently trades at a PEG ratio of 0.97. 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 average PEG ratio for the Internet - Services industry stood at 2.28 at the close of the market yesterday.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 79, finds itself in the top 32% echelons 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Dropbox (DBX) Stock Drops Despite Market Gains: Important Facts to Note
Dropbox (DBX - Free Report) closed the most recent trading day at $26.14, moving -0.49% from the previous trading session. This change lagged the S&P 500's 0.47% gain on the day. Elsewhere, the Dow gained 0.79%, while the tech-heavy Nasdaq added 0.28%.
The the stock of online file-sharing company has risen by 6.66% in the past month, leading the Computer and Technology sector's gain of 3.88% and the S&P 500's gain of 3.48%.
The investment community will be paying close attention to the earnings performance of Dropbox in its upcoming release. The company's earnings per share (EPS) are projected to be $0.52, reflecting a 7.14% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $636.93 million, up 0.62% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.22 per share and revenue of $2.54 billion, indicating changes of +12.12% and +1.73%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Dropbox. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering 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 holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Dropbox is at present trading with a Forward P/E ratio of 11.83. This expresses a discount compared to the average Forward P/E of 37.19 of its industry.
It's also important to note that DBX currently trades at a PEG ratio of 0.97. 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 average PEG ratio for the Internet - Services industry stood at 2.28 at the close of the market yesterday.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 79, finds itself in the top 32% echelons 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.