Wix.com (WIX) closed at $89.78 in the latest trading session, marking a +1.47% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.5%. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq gained 0.43%.
Heading into today, shares of the cloud-based web development company had lost 16.13% over the past month, lagging the Computer and Technology sector's loss of 0.15% and the S&P 500's gain of 0.18%.
Analysts and investors alike will be keeping a close eye on the performance of Wix.com in its upcoming earnings disclosure. 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.
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 latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Over the past month, there's been a 0.2% rise in the Zacks Consensus EPS estimate. Wix.com is currently a Zacks Rank #3 (Hold).
Digging into valuation, Wix.com currently has a Forward P/E ratio of 13.52. This represents a discount compared to its industry average Forward P/E of 17.21.
One should further note that WIX currently holds a PEG ratio of 0.73. 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 1.42 at the close of the market yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 79, positioning it in the top 33% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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