The Cheesecake and Dropbox have been highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – August 21, 2026 – Zacks Equity Research shares The Cheesecake Factory CAKE as the Bull of the Day and Dropbox DBX as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Coinbase Global COIN, Robinhood Markets HOOD and Interactive Brokers Group, Inc. IBKR.

 Here is a synopsis of all five stocks:

Bull of the Day:

The market has been on quite the run this year. When stocks are flying around like this, it can be tempting to throw money at anything with a pulse. But eventually, earnings matter. They always do. That’s why I like leaning on the Zacks Rank to uncover stocks where analysts are doing exactly what you want them to do. That’s raising their earnings estimates.

That brings us to today’s Bull of the Day, The Cheesecake Factory. The company operates a diverse restaurant portfolio led by its namesake Cheesecake Factory restaurants, along with North Italia, Flower Child and a collection of concepts under Fox Restaurant Concepts. This isn't just about giant slices of cheesecake anymore. CAKE has built itself into a legitimate multi-brand restaurant growth story.

More importantly, the earnings are backing it up.

The Cheesecake Factory absolutely crushed expectations in the second quarter. Revenue increased 7.7% year over year to $1.03 billion, beating the Zacks Consensus Estimate by more than 3%. Adjusted earnings came in at $1.44 per share versus expectations for $1.17. That's a 23% earnings surprise and a big jump from $1.16 per share during the same quarter last year.

The Cheesecake Factory Incorporated price-consensus-chart | The Cheesecake Factory Incorporated Quote

That report got Wall Street's attention.

Over the last 60 days, 10 analysts have increased their earnings estimates for the current year with none moving lower. The bullish moves pushed the Zacks Consensus Estimate from $4.01 to $4.47 per share. Ten analysts have also increased their estimates for next year without a single downward revision. That's exactly the sort of earnings estimate momentum we want to see.

That's the reason CAKE has recently earned itself a Zacks Rank #1 (Strong Buy). Current-year earnings growth is forecast at 18.5%. Next year's consensus calls for earnings around $4.96 per share, representing another double-digit increase. Revenue isn't sitting still either, with current-year sales growth expected around 6.8% followed by another 6.77% next year. In a world where some restaurants are struggling to make a profit, the company is taking the cake.

Bear of the Day:

There’s a big difference between a bad company and a bad stock. Sometimes a perfectly good company just doesn’t have the earnings momentum you want to see. That distinction becomes even more important when the broader market gets picky. You don’t necessarily need a business to fall apart for the stock to underperform. Sometimes, slowing growth and a lack of positive earnings revisions are enough.

That brings us to today’s Bear of the Day, Dropbox. Dropbox operates a cloud-based platform that allows individuals and businesses to store, organize, access and share digital content. The company has more than 700 million registered users around the world, making Dropbox one of the most recognizable names in file storage and collaboration.

Here’s where things get interesting. Dropbox actually delivered a decent second quarter. Adjusted earnings came in at 75 cents per share versus the Zacks Consensus Estimate of 74 cents, while revenue increased 0.9% year over year to $631.5 million. Paying users increased by roughly 96,000 sequentially, marking the third consecutive quarter of user growth. Management even raised its full-year operating-margin and unlevered free-cash-flow outlooks.

Dropbox, Inc. price-consensus-chart | Dropbox, Inc. Quote

So why the bearish stance? Growth remains the problem.

Even after that better-than-expected quarter, Dropbox expects 2026 revenue of just $2.513 billion to $2.523 billion. That's basically a flat-growth business at this point. It’s caused two analysts to cut expectations for the current year and three to do so for next year. Our Zacks Consensus Estimate has gone from $3.08 to $3.04 as a result for this year, with next year’s number down from $3.47 to $3.27. That’s the reason why the stock is a Zacks Rank #5 (Strong Sell) right now. Too many analysts dropping their numbers on the stock.

Dropbox is in the Internet – Services industry which ranks in the Bottom 30% of our Zacks Industry Rank.

Additional content:

COIN Slips in 6 Months, Valuation Expensive: What Investors Must Know

Shares of Coinbase Global have dipped 0.1% in the past six months, underperforming the industry, sector and the Zacks S&P 500 composite.

Coinbase, a leading player in the crypto space, is well-positioned to gain from expanding its range of listed digital assets and tokenized equities, along with its international growth and strategic acquisitions. The company has been actively pursuing initiatives that support CEO Brian Armstrong’s vision of evolving Coinbase into an “everything exchange,” delivering a comprehensive suite of digital financial services.

COIN vs. Industry, Sector, S&P 500 in 6 Months

Its peers, Robinhood Markets and Interactive Brokers Group, Inc., two crypto-oriented companies, have gained 33.4% and 26.5%, respectively, in the past six months.

Pessimistic Analyst Sentiment for COIN

The Zacks Consensus Estimate for 2026 is pegged at a loss of 5 cents per share, a nosedive from earnings of $1.41 expected 30 days ago. The consensus estimate for 2027 earnings has moved 16% south in the past 30 days.

Consensus estimates for Robinhood Markets’ 2026 and 2027 EPS have moved south in the past 30 days. However, the same for Interactive Brokers Group witnessed no movement in the same time frame.

Growth Projections for COIN

The Zacks Consensus Estimate for 2026 revenues indicates a year-over-year decrease, while for EPS it indicates an increase. However, the consensus estimate for 2027 revenues implies a year-over-year increase, but EPS reflects a decrease. Long-term earnings are expected to improve 3.1%, lower than the industry average of 7.5%.

COIN Is Expensive

COIN shares are trading at a premium to the industry. Its 12-month forward price-to-earnings of 70.7X is much higher than the industry average of 16.5X and the median of 53.71X over the past three years.

Its Value Score of D suggests that the stock is not cheap and indicates a stretched valuation at this moment.

COIN is more expensive than both Robinhood Markets and Interactive Brokers Group.

Investment Thesis for COIN Stock

International expansion also supports this strategy. Coinbase operates across Australia, Brazil, Kenya, the European Union, India, Japan, the Philippines, Indonesia, Singapore, the U.K. and Switzerland, helping diversify revenues and reduce dependence on the U.S. market. In the U.K., the company recently launched futures, perpetuals and options for professional investors, broadening its institutional offering and strengthening its position as a multi-asset trading venue.

Coinbase is further expanding through additional cryptocurrencies and tokenized equities. Regulatory approval to establish an international tokenization hub in Abu Dhabi positions the company to benefit from the migration of traditional financial assets onto blockchain infrastructure. Tokenized securities could eventually generate opportunities across issuance, custody, trading and settlement.

In 2026, Coinbase plans to prioritize real-world asset perpetuals, specialized exchanges, advanced trading tools, decentralized finance infrastructure, and AI- and robotics-driven innovation. Its continued strategic initiatives suggest that this broader expansion remains on track.

Despite maintaining strong liquidity and relatively low leverage, Coinbase remains vulnerable to crypto market volatility, rising operating expenses, impairment charges and restructuring costs tied to weaker digital asset prices.

Though Coinbase is gaining market share, given the weakening crypto market, the same is not translating into strong profits. The last reported quarter slumped with declining revenues, softer consumer trading dragging transaction revenues and lower crypto prices weighing on assets on the platform.

What Should Investors Do?

Coinbase is well-positioned for growth through its continued efforts to expand the crypto ecosystem, gain additional spot trading market share across both retail and institutional segments, and strengthen its platform capabilities. Rising average USDC balances, growth in USDC market capitalization and relatively stable cryptocurrency prices could also contribute to more consistent revenue generation.

Nevertheless, the stock’s premium valuation, softer market volatility, weaker digital asset prices, cautious analyst sentiment, near-term pressure on revenues and earnings, and below-average return on equity suggest a cautious outlook. Given these factors, it is better to shy away from this Zacks Rank #5 (Strong Sell) stock at the moment.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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