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Why Dropbox (DBX) Dipped More Than Broader Market Today
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In the latest trading session, Dropbox (DBX - Free Report) closed at $25.08, marking a -4.75% move from the previous day. This change lagged the S&P 500's daily loss of 0.01%. Elsewhere, the Dow gained 0.14%, while the tech-heavy Nasdaq lost 0.46%.
Coming into today, shares of the online file-sharing company had gained 1.39% in the past month. In that same time, the Computer and Technology sector lost 2.57%, while the S&P 500 lost 1.4%.
Investors will be eagerly watching for the performance of Dropbox in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.72, indicating a 1.41% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $625.6 million, down 0.02% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.01 per share and a revenue of $2.5 billion, signifying shifts of +5.99% and -0.65%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Dropbox. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.16% higher. As of now, Dropbox holds a Zacks Rank of #2 (Buy).
With respect to valuation, Dropbox is currently being traded at a Forward P/E ratio of 8.75. This valuation marks a discount compared to its industry average Forward P/E of 14.42.
Meanwhile, DBX's PEG ratio is currently 2. 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. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.52.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 167, putting it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
View the Zacks #1 Rank List
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Why Dropbox (DBX) Dipped More Than Broader Market Today
In the latest trading session, Dropbox (DBX - Free Report) closed at $25.08, marking a -4.75% move from the previous day. This change lagged the S&P 500's daily loss of 0.01%. Elsewhere, the Dow gained 0.14%, while the tech-heavy Nasdaq lost 0.46%.
Coming into today, shares of the online file-sharing company had gained 1.39% in the past month. In that same time, the Computer and Technology sector lost 2.57%, while the S&P 500 lost 1.4%.
Investors will be eagerly watching for the performance of Dropbox in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.72, indicating a 1.41% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $625.6 million, down 0.02% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.01 per share and a revenue of $2.5 billion, signifying shifts of +5.99% and -0.65%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Dropbox. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.16% higher. As of now, Dropbox holds a Zacks Rank of #2 (Buy).
With respect to valuation, Dropbox is currently being traded at a Forward P/E ratio of 8.75. This valuation marks a discount compared to its industry average Forward P/E of 14.42.
Meanwhile, DBX's PEG ratio is currently 2. 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. As of the close of trade yesterday, the Internet - Services industry held an average PEG ratio of 1.52.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 167, putting it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.