Wix.com (WIX) closed at $63.84 in the latest trading session, marking a -1.69% move from the prior day. The stock's change was less than the S&P 500's daily gain of 1.18%. Elsewhere, the Dow saw an upswing of 0.66%, while the tech-heavy Nasdaq appreciated by 1.96%.
The stock of cloud-based web development company has fallen by 26.17% in the past month, lagging the Computer and Technology sector's gain of 5.37% and the S&P 500's gain of 3.93%.
The upcoming earnings release of Wix.com will be of great interest to investors. The company is forecasted to report an EPS of $1.27, showcasing a 18.06% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $543.79 million, indicating a 14.81% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.21 per share and a revenue of $2.29 billion, representing changes of -15.16% and +14.8%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Wixcom. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate has moved 4.87% lower within the past month. Wix.com is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Wix.com is presently trading at a Forward P/E ratio of 10.47. This indicates a discount in contrast to its industry's Forward P/E of 12.77.
Investors should also note that WIX has a PEG ratio of 0.5 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Computers - IT Services stocks are, on average, holding a PEG ratio of 1.11 based on yesterday's closing prices.
The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 84, this industry ranks in the top 35% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Wix.com Ltd. (WIX): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).