Wix.com (WIX) closed at $161.77 in the latest trading session, marking a -1.17% move from the prior day. This change lagged the S&P 500's 0.07% loss on the day. At the same time, the Dow lost 0.37%, and the tech-heavy Nasdaq gained 0.03%.
Heading into today, shares of the cloud-based web development company had gained 6.31% over the past month, outpacing the Computer and Technology sector's gain of 5.58% and the S&P 500's gain of 3.94%.
Investors will be eagerly watching for the performance of Wix.com in its upcoming earnings disclosure. On that day, Wix.com is projected to report earnings of $1.75 per share, which would represent year-over-year growth of 4.79%. Alongside, our most recent consensus estimate is anticipating revenue of $487.58 million, indicating a 11.89% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.13 per share and a revenue of $1.98 billion, signifying shifts of +11.58% and +12.7%, respectively, from the last year.
Any recent changes to analyst estimates for Wix.com should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Wix.com boasts a Zacks Rank of #3 (Hold).
In the context of valuation, Wix.com is at present trading with a Forward P/E ratio of 22.96. This valuation marks a premium compared to its industry average Forward P/E of 19.88.
Meanwhile, WIX's PEG ratio is currently 1.11. 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 2.2 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 70, this industry ranks in the top 29% 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Wix.com Ltd. (WIX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
