Dropbox (DBX) closed at $32.13 in the latest trading session, marking a -0.83% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.53% for the day. Elsewhere, the Dow saw an upswing of 0.38%, while the tech-heavy Nasdaq appreciated by 0.25%.

Prior to today's trading, shares of the online file-sharing company had gained 7.86% over the past month. This has outpaced the Computer and Technology sector's loss of 0.75% and the S&P 500's gain of 1.24% in that time.

Investors will be eagerly watching for the performance of Dropbox in its upcoming earnings disclosure. On that day, Dropbox is projected to report earnings of $0.62 per share, which would represent year-over-year growth of 24%. Meanwhile, the latest consensus estimate predicts the revenue to be $638.53 million, indicating a 0.56% increase compared to the same quarter of the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Dropbox. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Dropbox presently features a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Dropbox has a Forward P/E ratio of 12.35 right now. Its industry sports an average Forward P/E of 23.95, so one might conclude that Dropbox is trading at a discount comparatively.

One should further note that DBX currently holds a PEG ratio of 1.03. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Internet - Services industry stood at 1.73 at the close of the market yesterday.

The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 83, putting it in the top 34% 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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

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