Wix.com (WIX) ended the recent trading session at $50.21, demonstrating a +1.74% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.72%. On the other hand, the Dow registered a gain of 0.3%, and the technology-centric Nasdaq increased by 1.12%.
Prior to today's trading, shares of the cloud-based web development company had lost 5.8% was narrower than the Computer and Technology sector's loss of 6.12% and lagged the S&P 500's loss of 0.9%.
Market participants will be closely following the financial results of Wix.com in its upcoming release. On that day, Wix.com is projected to report earnings of $1.19 per share, which would represent a year-over-year decline of 47.81%. In the meantime, our current consensus estimate forecasts the revenue to be $556.66 million, indicating a 13.62% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.57 per share and revenue of $2.26 billion. These totals would mark changes of -37.57% and +13.33%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Wixcom. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection has moved 37.89% higher. Right now, Wix.com possesses a Zacks Rank of #3 (Hold).
Investors should also note Wix.com's current valuation metrics, including its Forward P/E ratio of 10.8. This valuation marks a discount compared to its industry average Forward P/E of 12.96.
Meanwhile, WIX's PEG ratio is currently 0.68. 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 was holding an average PEG ratio of 1 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow WIX in the coming trading sessions, be sure to utilize Zacks.com.
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Wix.com Ltd. (WIX): Free Stock Analysis Report
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