Wix.com (WIX) ended the recent trading session at $135.85, demonstrating a -1.58% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.4%. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq gained 0.66%.
Coming into today, shares of the cloud-based web development company had lost 22.46% in the past month. In that same time, the Computer and Technology sector gained 2.27%, while the S&P 500 gained 1.02%.
Investors will be eagerly watching for the performance of Wix.com in its upcoming earnings disclosure. The company is expected to report EPS of $1.45, down 3.33% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $502.65 million, indicating a 13.04% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.74 per share and a revenue of $1.99 billion, indicating changes of +5.48% and +13.07%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Wixcom. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 3.01% higher. At present, Wix.com boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Wix.com is presently being traded at a Forward P/E ratio of 20.48. For comparison, its industry has an average Forward P/E of 16.3, which means Wix.com is trading at a premium to the group.
It is also worth noting that WIX currently has a PEG ratio of 1. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. WIX's industry had an average PEG ratio of 1.73 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 50, putting it in the top 21% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Wix.com Ltd. (WIX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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