Why Dropbox (DBX) is a Top Growth Stock for the Long-Term

Zacks Equity Research
·2-min read

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

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

Why This 1 Growth Stock Should Be On Your Watchlist

For growth investors, a company's financial strength, overall health, and future outlook take precedence, so they'll want to zero in on the Growth Style Score. This Score examines things like projected and historical earnings, sales, and cash flow to find stocks that will generate sustainable growth over time.

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 boasts a Growth Style Score of A and VGM Score of A, and holds a Zacks Rank #1 (Strong Buy) rating. Its bottom-line is projected to rise 7.1% year-over-year for 2024, while Wall Street anticipates its top line to improve by 1.7%.

Four analysts revised their earnings estimate higher in the last 60 days for fiscal 2024, while the Zacks Consensus Estimate has increased $0.11 to $2.12 per share. DBX also boasts an average earnings surprise of 13.1%.

On a historic basis, Dropbox has generated cash flow growth of 32.4%, and is expected to report cash flow expansion of 20.3% this year.

Investors should take the time to consider DBX for their portfolios due to its solid Zacks Rank rating, notable growth metrics, and impressive Growth and VGM Style Scores.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

To read this article on Zacks.com click here.

Zacks Investment Research

  • Up next
  • Up next
  • Up next
  • Up next

Latest stories

  • Zahid says Tok Mat’s remark on MAHB deal personal view, Umno on same page as Anwar govt

    KUALA LUMPUR, June 24 — Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi today clarified that Umno stands with the An...

  • Why the Market Dipped But Berkshire Hathaway B (BRK.B) Gained Today

    Berkshire Hathaway B (BRK.B) reachead $413.86 at the closing of the latest trading day, reflecting a +1.04% change compared to its last close.

  • Nvidia stock falls more than 6% as investors rotate out of chip heavyweight

    Nvidia stock slipped more than 12% since last Tuesday as investors rotated out of AI's hottest play of the year.

  • Tech boss ‘felt like he was bribed’ to move company from UK to China

    The former boss of the British microchip company Imagination Technologies has claimed Chinese investors seemingly offered him what “felt like a bribe” to move the company to China.

  • Singapore raises home supply to decade high as market cools

    Singapore is moving forward with a plan to release the most private housing supply since 2013 even as interest from developers cools.

  • Plug Power (PLUG) Gains As Market Dips: What You Should Know

    In the closing of the recent trading day, Plug Power (PLUG) stood at $2.45, denoting a +1.66% change from the preceding trading day.

  • ExxonMobil (XOM) Initiates Lau-Lau 2 Appraisal Offshore Guyana

    ExxonMobil's (XOM) appraisal of Lau-Lau 2 is a part of the energy major's extensive exploration program, which includes other wells like Haimara 3 and 4, Trumpetfish-1 and Bluefin-1.

  • Stock Market News for Jun 25, 2024

    U.S. stock markets closed mixed on Monday to start the last trading week of a successful June.

  • Questor: This unloved electric car engineering firm has real potential

    Fund management legend Sir John Templeton once said: “People are always asking me where the outlook is good …. But that’s the wrong question. The right question is ‘where is the outlook most miserable?’”

  • Bitcoin heads for its third worst week of the year

    Bitcoin (BTC-USD) prices extended their losses on Monday, putting the leading cryptocurrency on track for its third-worst week of 2024. Yahoo Finance's Ines Ferré analyzes current cryptocurrency market trends, delving into factors contributing to the downward pressure on bitcoin prices. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Angel Smith

  • Best-Performing Stocks of the Top ETF of the First Half

    Semiconductor stocks have led the market rally, buoyed by the artificial intelligence (AI) drive.

  • Best Momentum Stock to Buy for June 24th

    SCS, BKNIY and RMD made it to the Zacks Rank #1 (Strong Buy) momentum stocks list on June 24, 2024.

  • Nvidia's price target, Micron a 'top pick': Chip stocks

    Nvidia (NVDA) received a price target hike to $150 per share from Jefferies analysts, while Citigroup maintained its Buy rating on Micron Technology (MU) stock and named the semiconductor company as a "top pick." Morning Brief Hosts Brad Smith and Madison Mills examine these two chip names ahead of Monday's market open. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Luke Carberry Mogan.

  • Boost Bank: Probably the most complicated digital bank right now

    KUALA LUMPUR, June 25 — Boost Bank is Malaysia’s third digital bank launched early this month. At the time of writing, t...

  • Is Most-Watched Stock CRISPR Therapeutics AG (CRSP) Worth Betting on Now?

    Zacks.com users have recently been watching CRISPR Therapeutics (CRSP) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.

  • Bitcoin Mining Sector Is Attracting Growing Investor Interest Following Core Scientific Deal: JPMorgan

    Iris Energy is best positioned to take advantage of the HPC/AI opportunity, the report said.

  • Celsius Holdings Inc. (CELH) is Attracting Investor Attention: Here is What You Should Know

    Celsius (CELH) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.

  • Top tips for retirement, travel, paying your mortgage: Wealth!

    On today's episode of Wealth!, Host Brad Smith breaks down key personal finance tips, from mortgage rate hacks to saving for retirement and planning your summer vacation. Home prices in the 20 largest US cities have surged by an average of 7.2% year over year, according to recent Case-Shiller data. Structured Finance Association CEO Michael Bright advises homebuyers to "shop around" and build relationships with brokers to potentially "get a loan at a lower rate than you otherwise would." Yahoo Finance's Personal Finance Editor Molly Moorhead also emphasizes the impact of making just one extra mortgage payment each year in saving homeowners money in the long run. US Consumer confidence declined in June, with the index falling to 100.4, signaling growing economic concerns among American consumers. As cost-conscious consumers increasingly seek deals, McDonald's (MCD) has joined the ranks of fast food chains adapting to economic pressures by introducing a new value meal option. Starting June 25, the global fast food giant will add a $5 value meal to its menu. Citi Senior Global Economist Robert Sockin explains that despite these value meals, "the bigger problem is that you've had large gains in food prices over this cycle. And really, it's taking time for people to adjust to these much higher prices. And as I've noted, as we've got income gains that real purchasing power has improved and is likely to continue to improve given that food inflation is still running at relatively low levels. " 59% of employees who are not saving for retirement believe they are, according to Principal Financial Group. IRAHelp.com Founder and CPA Ed Slott explains why now is a great time to save for retirement: "Everybody thinks inflation is bad, and I get that because things cost more. But when it comes to taxes, inflation is great because tax brackets expand too. So more money can come out at lower rates. And the other opportunity now is the low rates... We have historic low tax rates now. So the key to anybody saving for retirement is if you have an IRA, a 401(k), remember those accounts are loaded with taxes. The only way you can get to that money is by paying taxes. So if you can get that money out now, because I'm worried about future higher taxes, we have debt limits, the laws may be changing, so anybody stockpiling money in an IRA or 401(k) should be taking action." Finally, as the summer travel season heats up, Yahoo Finance's Kerry Hannon breaks down how you can still find a deal. She believes the key to summer travel is being flexible: "If you can travel the last two weeks of August, that's going to be a good time. And it gives you time to book it right now and get some of the best advantages of that time gap in order to nail down some of these good rates." She notes that skipping popular destinations is also preferable, explaining, "Hotel prices are up about 10% particularly in the crowded cities. So I encourage people, maybe skip Paris, go to Lyon, skip Dublin, go to Cork." This post was written by Melanie Riehl

  • Bitcoin on track for third worst week of 2024. Here's why.

    Bitcoin (BTC-USD) is headed for its third worst week of the year as the crypto market is under pressure. Marathon Digital Holdings (MARA) CEO Fred Thiel joins Catalysts to discuss bitcoin's movement and how Marathon Digital Holdings handles the cryptocurrency's volatility. Thiel points to several issues facing bitcoin that are causing an increased supply in the market. First, Germany's criminal bureau is selling about 50,000 BTC. Japanese bitcoin exchange Mt. Gox is set to distribute a large volume of bitcoin in July as part of its bankruptcy. In addition, miners are selling large amounts of bitcoin to continue to fund and expand their operations. Thiel states that "bitcoin is historically very volatile," adding that Marathon Digital Holdings has a "very strong balance sheet" to deal with the cryptocurrency's swings. He explains that Marathon is focused on diversifying the business, starting a technology division to focus on areas getting a boost from bitcoin mining and the AI race, such as liquid cooling. He adds that the business is also focused on energy harvesting, leveraging bitcoin mining to generate new revenue streams. Thiel points to Marathon's recent initiative in Finland to heat 11,000 homes with the heat from its data center. For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Melanie Riehl

  • New Strong Sell Stocks for June 24th

    ADV, ALNT and CRMT have been added to the Zacks Rank #5 (Strong Sell) List on June 24, 2024.