Dropbox (DBX) Advances While Market Declines: Some Information for Investors

In the latest trading session, Dropbox (DBX) closed at $28.70, marking a +1.34% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.22%. Meanwhile, the Dow experienced a rise of 0.08%, and the technology-dominated Nasdaq saw a decrease of 0.51%. Heading into today, shares of the online file-sharing company had lost 1.46% over the past month, lagging the Computer and Technology sector's gain of 2.98% and the S&P 500's gain of 0.45%.The investment community will be closely monitoring the performance of Dropbox in its forthcoming earnings report. The company is forecasted to report an EPS of $0.63, showcasing a 5% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $617.77 million, indicating a 2.64% decrease compared to the same quarter of the previous year. For the full year, the Zacks Consensus Estimates project earnings of $2.61 per share and a revenue of $2.48 billion, demonstrating changes of +4.82% and -2.57%, respectively, from the preceding year. Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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 business performance and profit potential. Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Dropbox is currently a Zacks Rank #3 (Hold). Looking at valuation, Dropbox is presently trading at a Forward P/E ratio of 10.84. Its industry sports an average Forward P/E of 18.29, so one might conclude that Dropbox is trading at a discount comparatively. The Internet - Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 144, positioning it in the bottom 42% 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. Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com. Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dropbox, Inc. (DBX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks