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Dropbox (DBX) Surpasses Market Returns: Some Facts Worth Knowing
DBXDropbox(DBX) ZACKS·2025-02-06 00:20

Company Performance - Dropbox closed at 32.63,reflectinga+0.7732.63, reflecting a +0.77% change, outperforming the S&P 500's 0.39% gain [1] - Over the past month, Dropbox shares increased by 9.47%, significantly surpassing the Computer and Technology sector's gain of 0.04% and the S&P 500's gain of 1.7% [1] Upcoming Earnings - The earnings report for Dropbox is anticipated on February 20, 2025, with projected earnings per share (EPS) of 0.62, indicating a 24% increase from the same quarter last year [2] - Revenue is expected to be $638.53 million, reflecting a 0.56% growth compared to the corresponding quarter of the prior year [2] Analyst Estimates - Recent changes to analyst estimates for Dropbox are noteworthy, as they often indicate short-term business trends and analyst optimism regarding the company's profitability [3] - The Zacks Rank system, which incorporates these estimate changes, provides a quantitative model for stock performance prediction [4] Zacks Rank and Valuation - Dropbox currently holds a Zacks Rank of 3 (Hold), with the consensus EPS estimate remaining stagnant over the past month [5] - The company has a Forward P/E ratio of 12.35, which is below the industry average of 23.18, indicating it is trading at a discount [6] - Dropbox's PEG ratio stands at 1.03, compared to the industry average PEG ratio of 1.78 [6] Industry Context - The Internet - Services industry, part of the Computer and Technology sector, ranks in the top 33% of all industries according to the Zacks Industry Rank [7] - Strong individual industry groups, as measured by the Zacks Industry Rank, tend to outperform weaker groups by a factor of 2 to 1 [7]