In the latest trading session, Dropbox (DBX) closed at $31.85, marking a -0.41% move from the previous day. This change lagged the S&P 500's daily gain of 0.03%. Elsewhere, the Dow saw an upswing of 0.28%, while the tech-heavy Nasdaq depreciated by 0.36%.
Coming into today, shares of the online file-sharing company had gained 8% in the past month. In that same time, the Computer and Technology sector gained 2.31%, while the S&P 500 gained 4.19%.
Market participants will be closely following the financial results of Dropbox in its upcoming release. The company plans to announce its earnings on February 20, 2025. In that report, analysts expect Dropbox to post earnings of $0.62 per share. This would mark year-over-year growth of 24%. Meanwhile, our latest consensus estimate is calling for revenue of $638.53 million, up 0.56% from the prior-year quarter.
It's also important for investors to be aware of any recent modifications to analyst estimates for Dropbox. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Dropbox boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Dropbox is currently exchanging hands at a Forward P/E ratio of 12.22. This expresses a discount compared to the average Forward P/E of 23.65 of its industry.
Also, we should mention that DBX has a PEG ratio of 1.07. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Services stocks are, on average, holding a PEG ratio of 1.79 based on yesterday's closing prices.
The Internet - Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 32% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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