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Dropbox (DBX) Stock Drops Despite Market Gains: Important Facts to Note
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Dropbox (DBX - Free Report) ended the recent trading session at $36.48, demonstrating a -3% change from the preceding day's closing price. This change lagged the S&P 500's 0.17% gain on the day. Meanwhile, the Dow lost 0.18%, and the Nasdaq, a tech-heavy index, added 0.4%.
Heading into today, shares of the online file-sharing company had gained 10.62% over the past month, outpacing the Computer and Technology sector's gain of 0.37% and the S&P 500's loss of 1.29%.
The investment community will be paying close attention to the earnings performance of Dropbox in its upcoming release. The company's upcoming EPS is projected at $0.73, signifying a 1.35% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $628.6 million, down 0.92% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.04 per share and revenue of $2.52 billion, which would represent changes of +7.04% and -0.1%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Dropbox. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.43% higher. Dropbox is holding a Zacks Rank of #5 (Strong Sell) right now.
Valuation is also important, so investors should note that Dropbox has a Forward P/E ratio of 12.36 right now. This signifies a discount in comparison to the average Forward P/E of 15.76 for its industry.
Meanwhile, DBX's PEG ratio is currently 3.52. 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 1.51.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 187, positioning it in the bottom 24% 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.
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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Dropbox (DBX) Stock Drops Despite Market Gains: Important Facts to Note
Dropbox (DBX - Free Report) ended the recent trading session at $36.48, demonstrating a -3% change from the preceding day's closing price. This change lagged the S&P 500's 0.17% gain on the day. Meanwhile, the Dow lost 0.18%, and the Nasdaq, a tech-heavy index, added 0.4%.
Heading into today, shares of the online file-sharing company had gained 10.62% over the past month, outpacing the Computer and Technology sector's gain of 0.37% and the S&P 500's loss of 1.29%.
The investment community will be paying close attention to the earnings performance of Dropbox in its upcoming release. The company's upcoming EPS is projected at $0.73, signifying a 1.35% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $628.6 million, down 0.92% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.04 per share and revenue of $2.52 billion, which would represent changes of +7.04% and -0.1%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Dropbox. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.43% higher. Dropbox is holding a Zacks Rank of #5 (Strong Sell) right now.
Valuation is also important, so investors should note that Dropbox has a Forward P/E ratio of 12.36 right now. This signifies a discount in comparison to the average Forward P/E of 15.76 for its industry.
Meanwhile, DBX's PEG ratio is currently 3.52. 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 1.51.
The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 187, positioning it in the bottom 24% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.