In the latest trading session, Dropbox (DBX - Free Report) closed at $26.85, marking a +0.6% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.01%. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, added 0.26%.
Prior to today's trading, shares of the online file-sharing company had lost 10.43% over the past month. This has lagged the Computer and Technology sector's gain of 5.38% and the S&P 500's gain of 3.23% in that time.
DBX will be looking to display strength as it nears its next earnings release, which is expected to be November 8, 2018.
Investors might also notice recent changes to analyst estimates for DBX. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 8% higher. DBX is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, DBX is holding a Forward P/E ratio of 87.9. For comparison, its industry has an average Forward P/E of 32.81, which means DBX is trading at a premium to the group.
It is also worth noting that DBX currently has a PEG ratio of 5.86. 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 3.6 at yesterday's closing price.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 108, which puts it in the top 42% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.