In the latest close session, Wix.com (WIX) was down 4.54% at $44.11. The stock fell short of the S&P 500, which registered a gain of 1.75% for the day. Meanwhile, the Dow gained 1.86%, and the Nasdaq, a tech-heavy index, added 2.54%.
The stock of cloud-based web development company has fallen by 16.47% in the past month, lagging the Computer and Technology sector's loss of 3.11% and the S&P 500's loss of 1.63%.
Analysts and investors alike will be keeping a close eye on the performance of Wix.com in its upcoming earnings disclosure. The company is expected to report EPS of $1.15, down 49.56% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $558.62 million, up 14.02% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.53 per share and a revenue of $2.27 billion, representing changes of -38.11% and +13.92%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Wixcom. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 116.51% downward. Wix.com is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Wix.com currently has a Forward P/E ratio of 10.19. Its industry sports an average Forward P/E of 14.14, so one might conclude that Wix.com is trading at a discount comparatively.
Meanwhile, WIX's PEG ratio is currently 0.64. 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 1.09 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 164, putting it in the bottom 33% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Wix.com Ltd. (WIX): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).