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Why the Market Dipped But Dropbox (DBX) Gained Today
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Dropbox (DBX - Free Report) closed at $35.60 in the latest trading session, marking a +2.09% move from the prior day. This change outpaced the S&P 500's 0.02% loss on the day. On the other hand, the Dow registered a loss of 0.35%, and the technology-centric Nasdaq decreased by 0.15%.
Prior to today's trading, shares of the online file-sharing company had lost 6.54% lagged the Computer and Technology sector's gain of 3.58% and the S&P 500's gain of 2.05%.
Market participants will be closely following the financial results of Dropbox in its upcoming release. The company is expected to report EPS of $0.73, down 1.35% from the prior-year quarter. 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 might also notice recent changes to analyst estimates for Dropbox. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Dropbox boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Dropbox is currently trading at a Forward P/E ratio of 11.46. Its industry sports an average Forward P/E of 14.98, so one might conclude that Dropbox is trading at a discount comparatively.
One should further note that DBX currently holds a PEG ratio of 3.26. 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. The average PEG ratio for the Internet - Services industry stood at 1.81 at the close of the market yesterday.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 169, putting it in the bottom 32% 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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Why the Market Dipped But Dropbox (DBX) Gained Today
Dropbox (DBX - Free Report) closed at $35.60 in the latest trading session, marking a +2.09% move from the prior day. This change outpaced the S&P 500's 0.02% loss on the day. On the other hand, the Dow registered a loss of 0.35%, and the technology-centric Nasdaq decreased by 0.15%.
Prior to today's trading, shares of the online file-sharing company had lost 6.54% lagged the Computer and Technology sector's gain of 3.58% and the S&P 500's gain of 2.05%.
Market participants will be closely following the financial results of Dropbox in its upcoming release. The company is expected to report EPS of $0.73, down 1.35% from the prior-year quarter. 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 might also notice recent changes to analyst estimates for Dropbox. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Dropbox boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Dropbox is currently trading at a Forward P/E ratio of 11.46. Its industry sports an average Forward P/E of 14.98, so one might conclude that Dropbox is trading at a discount comparatively.
One should further note that DBX currently holds a PEG ratio of 3.26. 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. The average PEG ratio for the Internet - Services industry stood at 1.81 at the close of the market yesterday.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 169, putting it in the bottom 32% 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.