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Dropbox (DBX) Stock Declines While Market Improves: Some Information for Investors
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Dropbox (DBX - Free Report) closed at $21.87 in the latest trading session, marking a -0.68% move from the prior day. The stock's change was less than the S&P 500's daily gain of 1.02%. Meanwhile, the Dow gained 1.09%, and the Nasdaq, a tech-heavy index, added 1.18%.
Shares of the online file-sharing company have appreciated by 2.32% over the course of the past month, underperforming the Computer and Technology sector's gain of 8.46% and the S&P 500's gain of 4.44%.
Market participants will be closely following the financial results of Dropbox in its upcoming release. The company is predicted to post an EPS of $0.52, indicating a 1.96% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $629.65 million, up 1.15% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.12 per share and a revenue of $2.54 billion, indicating changes of +7.07% and +1.66%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Dropbox. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Dropbox is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Dropbox is at present trading with a Forward P/E ratio of 10.39. This valuation marks a discount compared to its industry's average Forward P/E of 24.85.
We can additionally observe that DBX currently boasts a PEG ratio of 0.91. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Services industry currently had an average PEG ratio of 2 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 101, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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Dropbox (DBX) Stock Declines While Market Improves: Some Information for Investors
Dropbox (DBX - Free Report) closed at $21.87 in the latest trading session, marking a -0.68% move from the prior day. The stock's change was less than the S&P 500's daily gain of 1.02%. Meanwhile, the Dow gained 1.09%, and the Nasdaq, a tech-heavy index, added 1.18%.
Shares of the online file-sharing company have appreciated by 2.32% over the course of the past month, underperforming the Computer and Technology sector's gain of 8.46% and the S&P 500's gain of 4.44%.
Market participants will be closely following the financial results of Dropbox in its upcoming release. The company is predicted to post an EPS of $0.52, indicating a 1.96% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $629.65 million, up 1.15% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.12 per share and a revenue of $2.54 billion, indicating changes of +7.07% and +1.66%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Dropbox. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Dropbox is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, Dropbox is at present trading with a Forward P/E ratio of 10.39. This valuation marks a discount compared to its industry's average Forward P/E of 24.85.
We can additionally observe that DBX currently boasts a PEG ratio of 0.91. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Services industry currently had an average PEG ratio of 2 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 101, which puts it in the top 41% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.