Dropbox (DBX) ended the recent trading session at $27.47, demonstrating a +1.07% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.67%. On the other hand, the Dow registered a gain of 0.56%, and the technology-centric Nasdaq increased by 0.87%.

The the stock of online file-sharing company has risen by 3.27% in the past month, leading the Computer and Technology sector's loss of 7.99% and the S&P 500's loss of 5.28%.

The investment community will be closely monitoring the performance of Dropbox in its forthcoming earnings report. The company is predicted to post an EPS of $0.62, indicating a 6.9% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $619.06 million, down 1.94% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.54 per share and revenue of $2.47 billion, indicating changes of +2.01% and -2.9%, respectively, compared to the previous year.

Investors might also notice recent changes to analyst estimates for Dropbox. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, Dropbox is carrying a Zacks Rank of #1 (Strong Buy).

With respect to valuation, Dropbox is currently being traded at a Forward P/E ratio of 10.69. This valuation marks a discount compared to its industry's average Forward P/E of 25.03.

We can also see that DBX currently has a PEG ratio of 0.93. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Services industry had an average PEG ratio of 1.32 as trading concluded yesterday.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 140, which puts it in the bottom 44% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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Dropbox, Inc. (DBX) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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