Below the resistance zone that is currently being tested, the potential for new gains appears limited for shares in Dropbox, Inc.. The stock's technical chart pattern suggests however that the level will be broken.
Summary
● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● The company has solid fundamentals for a short-term investment strategy.
Strengths
● Its core activity has a significant growth potential and sales are expected to surge, according to Standard & Poor's' forecast. Indeed, those may increase by 41% by 2022.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● Historically, the company has been releasing figures that are above expectations.
● For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
Weaknesses
● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.
● The stock is close to a major daily resistance at USD 23.55, which should be gotten rid of so as to gain new appreciation potential.
● With an enterprise value anticipated at 4.53 times the sales for the current fiscal year, the company turns out to be overvalued.
● With an expected P/E ratio at 224.88 and 143.87 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
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Dropbox, Inc. provides tools to help distributed teams prioritize, get organized, and keep work moving securely from anywhere. Its products include Dropbox Passwords, Vault, Computer Backup, Dropbox Sign, DocSend, Dropbox Capture and FormSwift, among others. Dropbox Passwords allows users to sign into Websites and apps by creating and storing usernames and passwords across devices. Dropbox Vault helps secure and organize sensitive information in the cloud. Computer backup automatically syncs folders on a user's computer to the cloud. Dropbox Sign is an e-signature and document workflow platform that enables customers to easily sign, send and receive documents through its intuitive Web and mobile-based interfaces. DocSend is a secure document sharing and analytics platform. Dropbox Capture is an all-in-one visual communication tool that helps team members share their work and ideas asynchronously. Its customers include individuals, families, teams, and organizations of all sizes.