Wix.com (WIX) closed at $149.10 in the latest trading session, marking a -3.65% move from the prior day. This move lagged the S&P 500's daily loss of 1.13%. On the other hand, the Dow registered a loss of 1.79%, and the technology-centric Nasdaq decreased by 1.3%.
Prior to today's trading, shares of the cloud-based web development company had lost 15.4% lagged the Computer and Technology sector's gain of 7.36% and the S&P 500's gain of 3.55%.
Market participants will be closely following the financial results of Wix.com in its upcoming release. The company's upcoming EPS is projected at $1.79, signifying a 7.19% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $487.58 million, indicating a 11.89% growth compared to the corresponding quarter of the prior year.
WIX's full-year Zacks Consensus Estimates are calling for earnings of $7.27 per share and revenue of $1.98 billion. These results would represent year-over-year changes of +13.77% and +12.7%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Wixcom. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 6.43% downward. At present, Wix.com boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, Wix.com is holding a Forward P/E ratio of 21.29. This valuation marks a premium compared to its industry average Forward P/E of 21.07.
One should further note that WIX currently holds a PEG ratio of 1.03. 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. WIX's industry had an average PEG ratio of 2.09 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 81, placing it within the top 33% of over 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.
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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