The most recent trading session ended with Wix.com (WIX) standing at $166.45, reflecting a +1.41% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily gain of 0.44%. Meanwhile, the Dow gained 0.7%, and the Nasdaq, a tech-heavy index, added 0.27%.
The cloud-based web development company's shares have seen an increase of 9.71% over the last month, not keeping up with the Computer and Technology sector's gain of 15.87% and the S&P 500's gain of 10.62%.
Analysts and investors alike will be keeping a close eye on the performance of Wix.com in its upcoming earnings disclosure. The company's earnings report is set to go public on May 21, 2025. The company is expected to report EPS of $1.66, up 28.68% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $471.78 million, reflecting a 12.39% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.53 per share and revenue of $1.98 billion, indicating changes of +17.84% and +12.45%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Wix.com. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.42% downward. Right now, Wix.com possesses a Zacks Rank of #3 (Hold).
Looking at valuation, Wix.com is presently trading at a Forward P/E ratio of 21.8. For comparison, its industry has an average Forward P/E of 20.16, which means Wix.com is trading at a premium to the group.
Investors should also note that WIX has a PEG ratio of 1.11 right now. 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 1.79 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 94, finds itself in the top 39% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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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