Wix.com (WIX) closed the most recent trading day at $80.16, moving -4.31% from the previous trading session. This change lagged the S&P 500's 0.06% loss on the day. Elsewhere, the Dow lost 0.17%, while the tech-heavy Nasdaq lost 0.06%.
Shares of the cloud-based web development company have depreciated by 19.6% over the course of the past month, underperforming the Computer and Technology sector's gain of 2.88%, and the S&P 500's gain of 1.99%.
The investment community will be paying close attention to the earnings performance of Wix.com in its upcoming release. On that day, Wix.com is projected to report earnings of $1.36 per share, which would represent a year-over-year decline of 29.53%. In the meantime, our current consensus estimate forecasts the revenue to be $528.03 million, indicating a 14.68% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $6.93 per share and a revenue of $2 billion, demonstrating changes of +8.45% and 0%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Wixcom. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 remained unchanged. As of now, Wix.com holds a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, Wix.com is holding a Forward P/E ratio of 12.81. This signifies a discount in comparison to the average Forward P/E of 17.54 for its industry.
Also, we should mention that WIX has a PEG ratio of 0.69. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computers - IT Services industry currently had an average PEG ratio of 1.44 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 98, putting it in the top 40% 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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