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Dropbox (DBX) Exceeds Market Returns: Some Facts to Consider
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Dropbox (DBX - Free Report) closed the most recent trading day at $34.37, moving +1.39% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.66%. Meanwhile, the Dow experienced a rise of 0.18%, and the technology-dominated Nasdaq saw an increase of 1.05%.
Shares of the online file-sharing company have depreciated by 2.67% over the course of the past month, underperforming the Computer and Technology sector's gain of 6.36%, and the S&P 500's gain of 0.55%.
Analysts and investors alike will be keeping a close eye on the performance of Dropbox in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.73, marking a 1.35% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $628.6 million, down 0.92% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.04 per share and a revenue of $2.52 billion, representing changes of +7.04% and -0.1%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Dropbox. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.43% higher. At present, Dropbox boasts a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Dropbox is presently being traded at a Forward P/E ratio of 11.14. This signifies a discount in comparison to the average Forward P/E of 15.25 for its industry.
We can additionally observe that DBX currently boasts a PEG ratio of 3.17. 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. Internet - Services stocks are, on average, holding a PEG ratio of 1.68 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 200, putting it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
View the Zacks #1 Rank List
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Dropbox (DBX) Exceeds Market Returns: Some Facts to Consider
Dropbox (DBX - Free Report) closed the most recent trading day at $34.37, moving +1.39% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.66%. Meanwhile, the Dow experienced a rise of 0.18%, and the technology-dominated Nasdaq saw an increase of 1.05%.
Shares of the online file-sharing company have depreciated by 2.67% over the course of the past month, underperforming the Computer and Technology sector's gain of 6.36%, and the S&P 500's gain of 0.55%.
Analysts and investors alike will be keeping a close eye on the performance of Dropbox in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.73, marking a 1.35% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $628.6 million, down 0.92% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.04 per share and a revenue of $2.52 billion, representing changes of +7.04% and -0.1%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Dropbox. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.43% higher. At present, Dropbox boasts a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Dropbox is presently being traded at a Forward P/E ratio of 11.14. This signifies a discount in comparison to the average Forward P/E of 15.25 for its industry.
We can additionally observe that DBX currently boasts a PEG ratio of 3.17. 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. Internet - Services stocks are, on average, holding a PEG ratio of 1.68 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 200, putting it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.