Here's Why Dropbox (DBX) is a Strong Momentum Stock
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Is This 1 Momentum Stock a Screaming Buy Right Now?
Momentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
Dropbox (DBX)
Dropbox offers a cloud-based platform that businesses and individuals can create, access and share digital content globally. It serves more than 700 million registered users across approximately 180 countries.
DBX sits at a Zacks Rank #2 (Buy), holds a Momentum Style Score of B, and has a VGM Score of B. The stock is down 3.2% and up 0.4% over the past one-week and four-week period, respectively, and Dropbox has gained 9.7% in the last one-year period as well. Additionally, an average of 3,023,371 shares were traded over the last 20 trading sessions.
Momentum investors also pay close attention to a company's earnings. For DBX, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0 to $2.01 per share for 2024. DBX boasts an average earnings surprise of 13.5%.
Investors should take the time to consider DBX for their portfolios due to its solid Zacks Ranks, notable earnings metrics, and impressive Momentum and VGM Style Scores.
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Dropbox, Inc. (DBX) : Free Stock Analysis Report