Dropbox (DBX) Outpaces Stock Market Gains: What You Should Know

In the latest trading session, Dropbox (DBX) closed at $30, marking a +1.49% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 1.26%. At the same time, the Dow added 0.8%, and the tech-heavy Nasdaq gained 1.77%.Prior to today's trading, shares of the online file-sharing company had gained 2.89% over the past month. This has outpaced the Computer and Technology sector's gain of 0.84% and the S&P 500's loss of 2.82% in that time.Market participants will be closely following the financial results of Dropbox in its upcoming release. The company is forecasted to report an EPS of $0.62, showcasing a 24% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $638.53 million, showing a 0.56% escalation compared to the year-ago quarter.Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Dropbox. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Dropbox currently has a Zacks Rank of #1 (Strong Buy).Valuation is also important, so investors should note that Dropbox has a Forward P/E ratio of 11.27 right now. This signifies a discount in comparison to the average Forward P/E of 22.57 for its industry.It is also worth noting that DBX currently has a PEG ratio of 0.94. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Services stocks are, on average, holding a PEG ratio of 1.45 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 38, which puts it in the top 16% 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.Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks