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Dropbox (DBX) Laps the Stock Market: Here's Why

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In the latest trading session, Dropbox (DBX - Free Report) closed at $27.88, marking a +2.42% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.06%. Elsewhere, the Dow saw an upswing of 0.41%, while the tech-heavy Nasdaq depreciated by 0.39%.

The stock of online file-sharing company has fallen by 5.22% in the past month, lagging the Computer and Technology sector's gain of 9.6% and the S&P 500's gain of 5.88%.

Analysts and investors alike will be keeping a close eye on the performance of Dropbox in its upcoming earnings disclosure. The company's earnings report is set to go public on August 7, 2025. In that report, analysts expect Dropbox to post earnings of $0.63 per share. This would mark year-over-year growth of 5%. Alongside, our most recent consensus estimate is anticipating revenue of $617.77 million, indicating a 2.64% downward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.61 per share and revenue of $2.48 billion, which would represent changes of +4.82% and -2.57%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Dropbox. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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 past month, the Zacks Consensus EPS estimate has remained steady. Dropbox presently features a Zacks Rank of #3 (Hold).

From a valuation perspective, Dropbox is currently exchanging hands at a Forward P/E ratio of 10.42. This signifies a discount in comparison to the average Forward P/E of 20.06 for its industry.

Meanwhile, DBX's PEG ratio is currently 7.19. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Services industry was having an average PEG ratio of 1.57.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 173, which puts it in the bottom 30% of all 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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