The most recent trading session ended with Wix.com (WIX) standing at $166.35, reflecting a +0.68% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 0.74% for the day. At the same time, the Dow added 0.05%, and the tech-heavy Nasdaq gained 1.26%.
Prior to today's trading, shares of the cloud-based web development company had lost 4.97% over the past month. This has was narrower than the Computer and Technology sector's loss of 6.23% and lagged the S&P 500's loss of 4.77% in that time.
The upcoming earnings release of Wix.com will be of great interest to investors. On that day, Wix.com is projected to report earnings of $1.66 per share, which would represent year-over-year growth of 28.68%. At the same time, our most recent consensus estimate is projecting a revenue of $472 million, reflecting a 12.44% rise from the equivalent quarter last year.
WIX's full-year Zacks Consensus Estimates are calling for earnings of $7.53 per share and revenue of $1.98 billion. These results would represent year-over-year changes of +17.84% and +12.5%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Wix.com. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.47% lower. At present, Wix.com boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Wix.com is currently being traded at a Forward P/E ratio of 21.95. This valuation marks a premium compared to its industry's average Forward P/E of 16.68.
Meanwhile, WIX's PEG ratio is currently 1.11. 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. As the market closed yesterday, the Computers - IT Services industry was having an average PEG ratio of 1.88.
The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 80, 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.
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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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