Buy The Recovery In Small-Cap Stock Box

An under-the-radar technology company, Box is a Silicon Valley-based cloud-based content management company.

Box develops software that allows users to store and manage files in an online folder system accessible from any device.

The company focuses on business clients rather than consumers, which is likely why most investors haven't heard of the company, whose market capitalization is only $4.74 billion U.S.

However, Box is growing its products and reputation in the content management and file sharing space, and its share price is responding.

After a rough patch coming out of the Covid-19 pandemic, BOX stock is up 5% in 2025. The shares are down 1% over the last 12 months though, presenting a buy-the-dip opportunity.

Over five years, Box's share price has risen 83%. The stock currently trades at 26 times future earnings estimates, which is reasonable for a technology company.

The stock has been trending higher after Box issued financial results that beat Wall Street forecasts and raised its forward guidance.

Box reported second-quarter earnings per share (EPS) of $0.30 U.S. on sales of $276 million U.S. That surpassed expectations of $0.26 U.S. in profits and sales of $275 million U.S.

Sales guidance of $290.5 million U.S. at the midpoint also beat Wall Street forecasts of $284 million U.S.

Management has also touted the integration of artificial intelligence (A.I.) into its products, giving its sales a boost.

The company earlier this year launched an A.I. tool that it says can be used for "search, deep research, and enhanced data extraction."

Analysts at Wall Street firm D.A. Davidson recently reiterated a buy rating on BOX stock with a $45 U.S. price target.

That price forecast is 40% higher than the $32 U.S. that the stock is currently trading at.

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