Wix.com (WIX) closed the most recent trading day at $100.11, moving -1.13% from the previous trading session. This move lagged the S&P 500's daily loss of 0.34%. Meanwhile, the Dow experienced a drop of 0.94%, and the technology-dominated Nasdaq saw an increase of 0.16%.
The cloud-based web development company's stock has dropped by 4.2% in the past month, falling short of the Computer and Technology sector's loss of 1% and the S&P 500's gain of 1.19%.
Investors will be eagerly watching for the performance of Wix.com in its upcoming earnings disclosure. The company is expected to report EPS of $1.36, down 29.53% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $528.03 million, up 14.68% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.93 per share and revenue of $2 billion, indicating changes of +8.45% and 0%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Wixcom. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.92% lower. At present, Wix.com boasts a Zacks Rank of #4 (Sell).
With respect to valuation, Wix.com is currently being traded at a Forward P/E ratio of 15.48. This expresses a discount compared to the average Forward P/E of 17.42 of its industry.
It is also worth noting that WIX currently has a PEG ratio of 0.83. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Computers - IT Services stocks are, on average, holding a PEG ratio of 1.52 based on yesterday's closing prices.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 109, putting it in the top 45% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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