Dropbox (DBX) is a Top-Ranked Value Stock: Should You Buy?

Zacks Premium and Style Scores Overview - Zacks Premium provides tools for investors to become smarter and more confident, including daily updates of Zacks Rank, Zacks Industry Rank, Zacks 1 Rank List, Equity Research reports, and Premium stock screens [1] - Zacks Style Scores complement the Zacks Rank by rating stocks based on value, growth, and momentum characteristics, helping investors identify stocks likely to outperform the market over the next 30 days [2][3] Style Scores Breakdown - Value Score: Evaluates stocks based on valuation metrics like P/E, PEG, Price/Sales, and Price/Cash Flow to identify undervalued stocks [3] - Growth Score: Focuses on a company's financial strength, health, and future outlook by analyzing projected and historic earnings, sales, and cash flow [4] - Momentum Score: Identifies stocks with upward or downward trends in price or earnings outlook using factors like one-week price change and monthly percentage change in earnings estimates [4] - VGM Score: Combines Value, Growth, and Momentum Scores to highlight stocks with the most attractive value, growth forecast, and momentum [5] Zacks Rank and Style Scores Integration - Zacks Rank uses earnings estimate revisions to rate stocks, with 1 (Strong Buy) stocks delivering an average annual return of +25.41% since 1988, outperforming the S&P 500 [6][7] - Over 800 stocks are rated as 1 (Strong Buy) or 2 (Buy) daily, making it challenging to select the best stocks without additional tools like Style Scores [7][8] - Combining Zacks Rank 1 or 2 with Style Scores of A or B increases the likelihood of selecting high-performing stocks [8][9] Case Study: Dropbox (DBX) - Dropbox is a cloud-based platform serving over 700 million registered users across 180 countries [10] - DBX holds a Zacks Rank of 3 (Hold) with a VGM Score of A and a Value Style Score of B, supported by a forward P/E ratio of 11.32 [10] - Four analysts revised their earnings estimates upwards for fiscal 2024, increasing the Zacks Consensus Estimate by $0.10 to$2.22 per share, with an average earnings surprise of 13.7% [11] - DBX's strong Zacks Rank and top-tier Style Scores make it a compelling option for investors [11]