Yahoo Finance Wix.com (WIX) Stock Slides as Market Rises: Facts to Know Before You Trade
Wix.com (WIX) ended the recent trading session at $168.83, demonstrating a -0.45% swing from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.26%. On the other hand, the Dow registered a gain of 0.18%, and the technology-centric Nasdaq increased by 0.35%.
Coming into today, shares of the cloud-based web development company had gained 38.72% in the past month. In that same time, the Computer and Technology sector gained 6.38%, while the S&P 500 gained 3.25%.
The investment community will be paying close attention to the earnings performance of Wix.com in its upcoming release. The company's upcoming EPS is projected at $1.32, signifying a 4.76% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $433.67 million, indicating a 11.2% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.46 per share and revenue of $1.75 billion, indicating changes of +24.37% and +12.24%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Wix.com. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 64.01% higher within the past month. At present, Wix.com boasts a Zacks Rank of #3 (Hold).
Investors should also note Wix.com's current valuation metrics, including its Forward P/E ratio of 31.04. For comparison, its industry has an average Forward P/E of 26.34, which means Wix.com is trading at a premium to the group.
We can also see that WIX currently has a PEG ratio of 1.4. 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. WIX's industry had an average PEG ratio of 2.92 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 145, finds itself in the bottom 43% echelons 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Wix.com Ltd. (WIX) : Free Stock Analysis Report
