Why Dropbox (DBX) is a top value stock in the long term

For new and old investors, making the most of the stock market opportunities and maintaining confidence in their investments are common goals.

Achieving these goals is made easier by the Zacks Style Scores, a unique set of guidelines that rate stocks based on popular investment methodologies, namely value, growth and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which can beat the market over the long term.

Why investors should pay attention to this value stock

Unlike growth or momentum investors, value investors are concerned with finding good stocks at good prices and figuring out which companies are trading below their true value before the broader market notices. The Value Style Score uses metrics such as P/E, PEG, price-to-sales and price-to-cash flow to select the most attractive and cheapest stocks.

Dropbox (DBX)

Dropbox provides a cloud-based platform that enables businesses and individuals to create, access, and share digital content worldwide. The company has more than 700 million registered users in around 180 countries.

DBX has a Value Style Score of B and a VGM Score of A and carries a Zacks Rank #1 (Strong Buy). Dropbox shares trade at an earnings multiple of 10.5X, as well as a PEG ratio of 0.9, a price-to-cash-flow ratio of 12.5X and a price-to-sales ratio of 2.9X.

A company’s earnings performance is also important for value investors. For fiscal year 2024, four analysts have revised their earnings estimates for DBX upward in the past 60 days, while the Zacks Consensus Estimate increased by $0.11 to $2.12 per share. DBX also has an average earnings surprise of 13.1%.

DBX should be on investors’ shortlist due to its impressive earnings and valuation fundamentals, a good Zacks Rank, and strong Value and VGM Style Scores.

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Dropbox, Inc. (DBX): Free Stock Analysis Report

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