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Dropbox (DBX) Exceeds Market Returns: Some Facts to Consider
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In the latest close session, Dropbox (DBX - Free Report) was up +1.06% at $26.58. The stock's performance was ahead of the S&P 500's daily gain of 0.5%. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, added 0.43%.
Shares of the online file-sharing company witnessed a loss of 6.07% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 0.15%, and the S&P 500's gain of 0.18%.
The investment community will be paying close attention to the earnings performance of Dropbox in its upcoming release. It is anticipated that the company will report an EPS of $0.66, marking a 9.59% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $627.51 million, down 2.5% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.82 per share and revenue of $2.51 billion, which would represent changes of +13.25% and 0%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Dropbox. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Dropbox holds a Zacks Rank of #3 (Hold).
In the context of valuation, Dropbox is at present trading with a Forward P/E ratio of 8.59. This denotes a discount relative to the industry average Forward P/E of 17.43.
Investors should also note that DBX has a PEG ratio of 1.39 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Services was holding an average PEG ratio of 1.79 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 95, placing it within the top 39% of over 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Dropbox (DBX) Exceeds Market Returns: Some Facts to Consider
In the latest close session, Dropbox (DBX - Free Report) was up +1.06% at $26.58. The stock's performance was ahead of the S&P 500's daily gain of 0.5%. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, added 0.43%.
Shares of the online file-sharing company witnessed a loss of 6.07% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 0.15%, and the S&P 500's gain of 0.18%.
The investment community will be paying close attention to the earnings performance of Dropbox in its upcoming release. It is anticipated that the company will report an EPS of $0.66, marking a 9.59% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $627.51 million, down 2.5% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.82 per share and revenue of $2.51 billion, which would represent changes of +13.25% and 0%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Dropbox. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Dropbox holds a Zacks Rank of #3 (Hold).
In the context of valuation, Dropbox is at present trading with a Forward P/E ratio of 8.59. This denotes a discount relative to the industry average Forward P/E of 17.43.
Investors should also note that DBX has a PEG ratio of 1.39 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Services was holding an average PEG ratio of 1.79 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 95, placing it within the top 39% of over 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.