The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Dropbox (DBX) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? One simple way to answer this question is to take a look at the year-to-date performance of DBX and the rest of the Computer and Technology group's stocks.
Dropbox is a member of our Computer and Technology group, which includes 630 different companies and currently sits at #4 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. DBX is currently sporting a Zacks Rank of #1 (Strong Buy).
Over the past 90 days, the Zacks Consensus Estimate for DBX's full-year earnings has moved 164.29% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, DBX has returned 11% so far this year. Meanwhile, stocks in the Computer and Technology group have gained about 0.75% on average. This means that Dropbox is outperforming the sector as a whole this year.
To break things down more, DBX belongs to the Internet - Services industry, a group that includes 50 individual companies and currently sits at #112 in the Zacks Industry Rank. On average, this group has gained an average of 2.53% so far this year, meaning that DBX is performing better in terms of year-to-date returns.
DBX will likely be looking to continue its solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to the company.
Dropbox, Inc. (DBX): Free Stock Analysis Report
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Zacks Investment Research