Yahoo Finance Wix.com (WIX) Stock Sinks As Market Gains: What You Should Know
In the latest market close, Wix.com (WIX) reached $168.49, with a -0.2% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.27%. Elsewhere, the Dow saw a downswing of 0.31%, while the tech-heavy Nasdaq appreciated by 0.88%.
Prior to today's trading, shares of the cloud-based web development company had gained 32.93% over the past month. This has outpaced the Computer and Technology sector's loss of 4.82% and the S&P 500's gain of 2.85% in that time.
Investors will be eagerly watching for the performance of Wix.com in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.32, indicating a 4.76% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $433.67 million, up 11.2% from the year-ago period.
WIX's full-year Zacks Consensus Estimates are calling for earnings of $5.46 per share and revenue of $1.75 billion. These results would represent year-over-year changes of +24.37% and +12.24%, respectively.
Investors should also note any recent changes to analyst estimates for Wix.com. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 64.01% higher. Currently, Wix.com is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Wix.com currently has a Forward P/E ratio of 30.9. For comparison, its industry has an average Forward P/E of 26.56, which means Wix.com is trading at a premium to the group.
Also, we should mention that WIX has a PEG ratio of 1.39. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computers - IT Services was holding an average PEG ratio of 2.92 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 146, which puts it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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
