The latest trading session saw Wix.com (WIX) ending at $182.75, denoting a -0.09% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.7%. Meanwhile, the Dow gained 0.78%, and the Nasdaq, a tech-heavy index, added 0.52%.
The cloud-based web development company's shares have seen an increase of 14.49% over the last month, not keeping up with the Computer and Technology sector's gain of 14.66% and outstripping the S&P 500's gain of 9.81%.
Investors will be eagerly watching for the performance of Wix.com in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 21, 2025. The company's upcoming EPS is projected at $1.66, signifying a 28.68% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $471.78 million, up 12.39% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $7.53 per share and a revenue of $1.98 billion, demonstrating changes of +17.84% and +12.45%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Wix.com. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 0.42% lower. As of now, Wix.com holds a Zacks Rank of #3 (Hold).
Digging into valuation, Wix.com currently has a Forward P/E ratio of 24.3. This denotes a premium relative to the industry's average Forward P/E of 20.93.
One should further note that WIX currently holds a PEG ratio of 1.23. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computers - IT Services industry had an average PEG ratio of 1.91 as trading concluded yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 74, this industry ranks in the top 30% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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