Dropbox (DBX) closed at $28.00 in the latest trading session, marking a +1.63% move from the prior day. This move outpaced the S&P 500's daily gain of 0.83%. Elsewhere, the Dow saw an upswing of 0.77%, while the tech-heavy Nasdaq appreciated by 1.02%.
Shares of the online file-sharing company have depreciated by 5.65% over the course of the past month, underperforming the Computer and Technology sector's gain of 8.25%, and the S&P 500's gain of 4.99%.
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Investors will be eagerly watching for the performance of Dropbox in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.63, indicating a 5% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $617.77 million, reflecting a 2.64% fall from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.61 per share and a revenue of $2.48 billion, signifying shifts of +4.82% and -2.57%, respectively, from the last year.
Any recent changes to analyst estimates for Dropbox should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
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, 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. As of now, Dropbox holds a Zacks Rank of #3 (Hold).
Digging into valuation, Dropbox currently has a Forward P/E ratio of 10.55. Its industry sports an average Forward P/E of 20.77, so one might conclude that Dropbox is trading at a discount comparatively.
Meanwhile, DBX's PEG ratio is currently 7.27. 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 industry currently had an average PEG ratio of 1.49 as of yesterday's close.
The Internet – Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 161, finds itself in the bottom 35% echelons of all 250+ industries.
