Wix.com (WIX) closed at $130.82 in the latest trading session, marking a -1.22% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.53%. Elsewhere, the Dow saw an upswing of 0.52%, while the tech-heavy Nasdaq appreciated by 0.52%.
The stock of cloud-based web development company has fallen by 27.75% in the past month, lagging the Computer and Technology sector's gain of 2.01% and the S&P 500's gain of 0.71%.
The upcoming earnings release of Wix.com will be of great interest to investors. The company is forecasted to report an EPS of $1.45, showcasing a 3.33% downward movement from the corresponding quarter of the prior year. 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.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.74 per share and a revenue of $1.99 billion, representing changes of +5.48% and +13.07%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Wixcom. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.01% increase. As of now, Wix.com holds a Zacks Rank of #3 (Hold).
Investors should also note Wix.com's current valuation metrics, including its Forward P/E ratio of 19.65. This signifies a premium in comparison to the average Forward P/E of 16.35 for its industry.
Meanwhile, WIX's PEG ratio is currently 0.96. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computers - IT Services industry currently had an average PEG ratio of 1.69 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 57, positioning it in the top 24% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow WIX in the coming trading sessions, be sure to utilize Zacks.com.
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
Wix.com Ltd. (WIX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
