In the latest close session, Wix.com (WIX) was down 2.54% at $51.45. The stock's change was less than the S&P 500's daily loss of 1.01%. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq lost 1.4%.
The cloud-based web development company's shares have seen an increase of 24.24% over the last month, surpassing the Computer and Technology sector's loss of 3.73% and the S&P 500's gain of 0.32%.
Market participants will be closely following the financial results of Wix.com in its upcoming release. The company plans to announce its earnings on August 4, 2026. The company's earnings per share (EPS) are projected to be $1.19, reflecting a 47.81% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $556.66 million, up 13.62% from the year-ago period.
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 recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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 58.73% downward. Wix.com is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Wix.com is holding a Forward P/E ratio of 11.55. This indicates a discount in contrast to its industry's Forward P/E of 12.9.
It's also important to note that WIX currently trades at a PEG ratio of 0.73. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Computers - IT Services industry had an average PEG ratio of 0.98.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 87, putting it in the top 36% of all 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Wix.com Ltd. (WIX): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).