Dropbox (DBX) Exceeds Market Returns: Some Facts to Consider

In the latest close session, Dropbox (DBX) was up +1.06% at $26.58. The stock's performance was ahead of the S&P 500's daily gain of 0.5%. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, added 0.43%. Shares of the online file-sharing company witnessed a loss of 6.07% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 0.15%, and the S&P 500's gain of 0.18%.The investment community will be paying close attention to the earnings performance of Dropbox in its upcoming release. It is anticipated that the company will report an EPS of $0.66, marking a 9.59% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $627.51 million, down 2.5% from the year-ago period. For the full year, the Zacks Consensus Estimates are projecting earnings of $2.82 per share and revenue of $2.51 billion, which would represent changes of +13.25% and 0%, respectively, from the prior year. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Dropbox. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Dropbox holds a Zacks Rank of #3 (Hold). In the context of valuation, Dropbox is at present trading with a Forward P/E ratio of 8.59. This denotes a discount relative to the industry average Forward P/E of 17.43. Investors should also note that DBX has a PEG ratio of 1.39 right now. 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 was holding an average PEG ratio of 1.79 at yesterday's closing price. The Internet - Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 95, placing it within the top 39% of over 250 industries. The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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. Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dropbox, Inc. (DBX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks