In the latest trading session, Wix.com (WIX) closed at $76.24, marking a +1.09% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.47%. Elsewhere, the Dow saw an upswing of 0.04%, while the tech-heavy Nasdaq appreciated by 0.9%.
The cloud-based web development company's stock has dropped by 21.31% in the past month, falling short of the Computer and Technology sector's loss of 1.96% and the S&P 500's loss of 0.16%.
Analysts and investors alike will be keeping a close eye on the performance of Wix.com in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.36, signifying a 29.53% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $528.03 million, up 14.68% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.76 per share and revenue of $2 billion, which would represent changes of +5.79% and +13.43%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Wixcom. 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 business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 1.53% higher. Wix.com is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Wix.com has a Forward P/E ratio of 11.58 right now. This signifies a discount in comparison to the average Forward P/E of 14.86 for its industry.
We can also see that WIX currently has a PEG ratio of 0.62. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Computers - IT Services industry stood at 1.29 at the close of the market yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 143, which puts it in the bottom 42% 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.
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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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