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In present scenario, a stock like Wix, with sound growth opportunities, can be an attractive investment. WIX delivered an average earnings surprise of 60% in the trailing four quarters.
For 2022 and 2023, the company’s revenues estimates are pegged at $1.4 billion and $1.5 billion, suggesting year-over-year growth of 9% and 8.5%, respectively.
The Zacks Consensus Estimate for 2022 stands at a loss of 74 cents per share indicating improvement from a loss of $1.39 per share reported in the prior-year quarter. For 2023, the Zacks Consensus Estimate is pegged at an earnings of 67 cents per share.
The stock has lost 37.4% in the past year compared with the sub-industry’s decline of 21.5%. It is trading 41% below its 52-week high of $142.34 on Jan 20, 2022, making it relatively affordable for investors.
Image Source: Zacks Investment Research
Growth Drivers
Israel-based Wix provides solutions that enable businesses, organizations, professionals and individuals to develop customized websites and application platforms.
Wix’s performance is benefiting from continued momentum seen in annualized recurring revenues from Creative subscriptions along with robust uptake of Wix Payments and other new e-commerce applications. The company continues to expand its e-commerce presence with the launch of Wix Blocks and the Wix eCommerce platform. Last year, the company rolled out new Wix Portfolio solution, which enables professional users and students to customize and develop an online portfolio to showcase and grow their business.
Increasing partner revenues and business to business partnerships are tailwinds. The company’s previously announced cost reduction plan, along with the conversion of new users to paid subscriptions, strong customer retention and increasing average revenue per subscription augurs well.
Synergies from the acquisitions of Modalyst, Rise, ai and SpeedETab are aiding the top-line performance.
However, the volatile macro environment and unfavourable foreign currency movement are weighing on the company’s performance. Stiff competition is a major concern.
Other Stocks to Consider
Investors interested in the broader technology space may also consider stocks like Arista Networks (ANET - Free Report) , Jabil (JBL - Free Report) and Pure Storage (PSTG - Free Report) . While Jabil sports a Zacks Rank #1, Arista and Pure Storage carry a Zacks Rank #2.
The Zacks Consensus Estimate for Arista Networks’ 2022 earnings is pegged at $4.37 per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 17.5%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 12.7%. Shares of ANET have declined 7.2% in the past year.
The Zacks Consensus Estimate for Jabil’s 2023 earnings is pegged at $8.31 per share, rising 1.6% in the past 60 days. The long-term earnings growth rate is anticipated to be 12%.
Jabil’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 8.8%. Shares of JBL have increased 17.2% in the past year.
The Zacks Consensus Estimate for Pure Storage’s fiscal 2023 earnings is pegged at $1.28 per share, up 8.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 21.3%.
Pure Storage’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 156%. Shares of PSTG have declined 3.9% in the past year.
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Here's Why You May Consider Adding WIX to Your Portfolio
Wix.com Ltd (WIX - Free Report) is one stock investors may want to keep an eye on in the current volatile market conditions. The company currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In present scenario, a stock like Wix, with sound growth opportunities, can be an attractive investment. WIX delivered an average earnings surprise of 60% in the trailing four quarters.
For 2022 and 2023, the company’s revenues estimates are pegged at $1.4 billion and $1.5 billion, suggesting year-over-year growth of 9% and 8.5%, respectively.
The Zacks Consensus Estimate for 2022 stands at a loss of 74 cents per share indicating improvement from a loss of $1.39 per share reported in the prior-year quarter. For 2023, the Zacks Consensus Estimate is pegged at an earnings of 67 cents per share.
The stock has lost 37.4% in the past year compared with the sub-industry’s decline of 21.5%. It is trading 41% below its 52-week high of $142.34 on Jan 20, 2022, making it relatively affordable for investors.
Image Source: Zacks Investment Research
Growth Drivers
Israel-based Wix provides solutions that enable businesses, organizations, professionals and individuals to develop customized websites and application platforms.
Wix’s performance is benefiting from continued momentum seen in annualized recurring revenues from Creative subscriptions along with robust uptake of Wix Payments and other new e-commerce applications. The company continues to expand its e-commerce presence with the launch of Wix Blocks and the Wix eCommerce platform. Last year, the company rolled out new Wix Portfolio solution, which enables professional users and students to customize and develop an online portfolio to showcase and grow their business.
Increasing partner revenues and business to business partnerships are tailwinds. The company’s previously announced cost reduction plan, along with the conversion of new users to paid subscriptions, strong customer retention and increasing average revenue per subscription augurs well.
Synergies from the acquisitions of Modalyst, Rise, ai and SpeedETab are aiding the top-line performance.
However, the volatile macro environment and unfavourable foreign currency movement are weighing on the company’s performance. Stiff competition is a major concern.
Other Stocks to Consider
Investors interested in the broader technology space may also consider stocks like Arista Networks (ANET - Free Report) , Jabil (JBL - Free Report) and Pure Storage (PSTG - Free Report) . While Jabil sports a Zacks Rank #1, Arista and Pure Storage carry a Zacks Rank #2.
The Zacks Consensus Estimate for Arista Networks’ 2022 earnings is pegged at $4.37 per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 17.5%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 12.7%. Shares of ANET have declined 7.2% in the past year.
The Zacks Consensus Estimate for Jabil’s 2023 earnings is pegged at $8.31 per share, rising 1.6% in the past 60 days. The long-term earnings growth rate is anticipated to be 12%.
Jabil’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 8.8%. Shares of JBL have increased 17.2% in the past year.
The Zacks Consensus Estimate for Pure Storage’s fiscal 2023 earnings is pegged at $1.28 per share, up 8.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 21.3%.
Pure Storage’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 156%. Shares of PSTG have declined 3.9% in the past year.