Dropbox (DBX) closed the most recent trading day at $25.42, moving -0.16% from the previous trading session. This change was narrower than the S&P 500's 1.57% loss on the day. Meanwhile, the Dow lost 0.84%, and the Nasdaq, a tech-heavy index, lost 2.15%.

The the stock of online file-sharing company has fallen by 0.55% in the past month, leading the Computer and Technology sector's loss of 16.01% and the S&P 500's loss of 12.16%.

The investment community will be paying close attention to the earnings performance of Dropbox in its upcoming release. The company is expected to report EPS of $0.62, up 6.9% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $619.06 million, down 1.94% from the year-ago period.

DBX's full-year Zacks Consensus Estimates are calling for earnings of $2.54 per share and revenue of $2.47 billion. These results would represent year-over-year changes of +2.01% and -2.9%, respectively.

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. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Dropbox presently features a Zacks Rank of #1 (Strong Buy).

From a valuation perspective, Dropbox is currently exchanging hands at a Forward P/E ratio of 10.01. This expresses a discount compared to the average Forward P/E of 21.08 of its industry.

Also, we should mention that DBX has a PEG ratio of 0.88. 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 was holding an average PEG ratio of 1.14 at yesterday's closing price.

The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 135, which puts it in the bottom 46% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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