Wix.com (WIX) closed the most recent trading day at $149.60, moving +1.52% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.57%. Elsewhere, the Dow saw a downswing of 0.84%, while the tech-heavy Nasdaq depreciated by 2.15%.
Coming into today, shares of the cloud-based web development company had lost 13.52% in the past month. In that same time, the Computer and Technology sector lost 16.01%, while the S&P 500 lost 12.16%.
The investment community will be closely monitoring the performance of Wix.com in its forthcoming earnings report. The company is expected to report EPS of $1.66, up 28.68% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $472 million, indicating a 12.44% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.55 per share and revenue of $1.99 billion, indicating changes of +18.15% and +12.88%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Wix.com. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, Wix.com holds a Zacks Rank of #3 (Hold).
In terms of valuation, Wix.com is currently trading at a Forward P/E ratio of 19.51. This represents a premium compared to its industry's average Forward P/E of 16.46.
Also, we should mention that WIX has a PEG ratio of 0.99. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Computers - IT Services industry stood at 1.73 at the close of the market yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 78, putting it in the top 32% 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.
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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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