Dropbox (DBX) closed at $30.52 in the latest trading session, marking a -0.75% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 1.11%. Meanwhile, the Dow lost 0.77%, and the Nasdaq, a tech-heavy index, lost 1.49%.

Shares of the online file-sharing company have appreciated by 9.82% over the course of the past month, outperforming the Computer and Technology sector's gain of 5.27% and the S&P 500's gain of 0.4%.

Market participants will be closely following the financial results of Dropbox in its upcoming release. In that report, analysts expect Dropbox to post earnings of $0.62 per share. This would mark year-over-year growth of 24%. At the same time, our most recent consensus estimate is projecting a revenue of $638.53 million, reflecting a 0.56% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.39 per share and a revenue of $2.54 billion, indicating changes of +20.71% and +1.66%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Dropbox. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, Dropbox possesses a Zacks Rank of #1 (Strong Buy).

With respect to valuation, Dropbox is currently being traded at a Forward P/E ratio of 12.85. This represents a discount compared to its industry's average Forward P/E of 24.48.

One should further note that DBX currently holds a PEG ratio of 1.07. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Services was holding an average PEG ratio of 2.06 at yesterday's closing price.

The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 40, finds itself in the top 16% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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

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