Dropbox (DBX - Free Report) closed at $23.72 in the latest trading session, marking a +1.07% move from the prior day. This move outpaced the S&P 500's daily gain of 0.65%. At the same time, the Dow added 0.79%, and the tech-heavy Nasdaq gained 1.01%.
Heading into today, shares of the online file-sharing company had lost 10.59% over the past month, lagging the Computer and Technology sector's loss of 9.21% and the S&P 500's loss of 6.82% 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.
Any recent changes to analyst estimates for DBX should also be noted by investors. 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 company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. DBX is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that DBX has a Forward P/E ratio of 76.41 right now. For comparison, its industry has an average Forward P/E of 33.38, which means DBX is trading at a premium to the group.
We can also see that DBX currently has a PEG ratio of 5.09. 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 Internet - Services industry currently had an average PEG ratio of 2.09 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 35% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.