Dropbox (DBX - Free Report) closed the most recent trading day at $17.59, moving -1.29% from the previous trading session. This change was narrower than the S&P 500's 4.34% loss on the day. Elsewhere, the Dow lost 4.55%, while the tech-heavy Nasdaq lost 3.79%.
Coming into today, shares of the online file-sharing company had lost 4.78% in the past month. In that same time, the Computer and Technology sector lost 27.47%, while the S&P 500 lost 28.78%.
Investors will be hoping for strength from DBX as it approaches its next earnings release. In that report, analysts expect DBX to post earnings of $0.14 per share. This would mark year-over-year growth of 40%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $453.24 million, up 17.54% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.72 per share and revenue of $1.90 billion. These totals would mark changes of +44% and +14.25%, respectively, from last year.
Investors should also note any 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 164.29% higher. DBX is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at its valuation, DBX is holding a Forward P/E ratio of 24.81. Its industry sports an average Forward P/E of 23.09, so we one might conclude that DBX is trading at a premium comparatively.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 34% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.