Wix.com (WIX) Suffers a Larger Drop Than the General Market: Key Insights

In the latest trading session, Wix.com (WIX) closed at $70.46, marking a -1.19% move from the previous day. This change lagged the S&P 500's 0.43% loss on the day. On the other hand, the Dow registered a loss of 1.05%, and the technology-centric Nasdaq decreased by 0.92%.

Prior to today's trading, shares of the cloud-based web development company had lost 20.74% lagged the Computer and Technology sector's loss of 3.21% and the S&P 500's loss of 0.5%.

The investment community will be closely monitoring the performance of Wix.com in its forthcoming earnings report. The company is scheduled to release its earnings on March 4, 2026. The company is expected to report EPS of $1.36, down 29.53% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $528.03 million, indicating a 14.68% increase compared to the same quarter of the previous year.

WIX's full-year Zacks Consensus Estimates are calling for earnings of $6.76 per share and revenue of $2 billion. These results would represent year-over-year changes of +5.79% and +13.43%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for Wixcom. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

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.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Wix.com is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Wix.com is currently trading at a Forward P/E ratio of 10.95. Its industry sports an average Forward P/E of 12.99, so one might conclude that Wix.com is trading at a discount comparatively.

It's also important to note that WIX currently trades at a PEG ratio of 0.59. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Computers - IT Services stocks are, on average, holding a PEG ratio of 1.19 based on yesterday's closing prices.

The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 79, putting it in the top 33% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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