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Earnings Estimates Moving Higher for Dropbox (DBX): Time to Buy?

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Dropbox, Inc. (DBX - Free Report) is a service company enabling users to share files, photos and spreadsheets could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.

These positive earnings estimate revisions suggest that analysts are becoming more optimistic on DBX’s earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that Dropbox could be a solid choice for investors.

Current Quarter Estimates for DBX

In the past 30 days, three estimates have gone higher for Dropbox while none have gone lower in the same time period. The trend has been pretty favorable too, with estimates increasing from 12 cents a share 30 days ago, to 14 cents today, a move of 16.7%.

Current Year Estimates for DBX

Meanwhile, Dropbox’s current year figures are also looking quite promising, with six estimates moving higher in the past month, compared to none lower. The consensus estimate trend has also seen a boost for this time frame, increasing from 57 cents per share 30 days ago to 72 cents per share today, an increase of 26.3%.

Bottom Line

The stock has also started to move higher lately, adding 17.3% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So, investors may want to consider this Zacks Rank #1 (Strong Buy) stock to profit in the near future. You can see the complete list of today’s Zacks #1 Rank stocks here.

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