Wix.com (WIX) closed the most recent trading day at $139.35, moving -1.11% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 1.23%. At the same time, the Dow added 0.72%, and the tech-heavy Nasdaq gained 1.86%.
The stock of cloud-based web development company has fallen by 20.58% in the past month, lagging the Computer and Technology sector's gain of 3.49% and the S&P 500's gain of 2.45%.
Market participants will be closely following the financial results of Wix.com in its upcoming release. It is anticipated that the company will report an EPS of $1.45, marking a 3.33% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $502.65 million, up 13.04% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.74 per share and revenue of $1.99 billion. These totals would mark changes of +5.48% and +13.07%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Wixcom. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.01% higher. At present, Wix.com boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Wix.com is currently trading at a Forward P/E ratio of 20.91. This valuation marks a premium compared to its industry average Forward P/E of 16.65.
Meanwhile, WIX's PEG ratio is currently 1.02. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Computers - IT Services industry held an average PEG ratio of 1.82.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 59, which puts it in the top 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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