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Wix.com (WIX) Dips More Than Broader Market: What You Should Know

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Wix.com (WIX - Free Report) closed the latest trading day at $223.90, indicating a -1.03% change from the previous session's end. The stock's performance was behind the S&P 500's daily loss of 0.04%. At the same time, the Dow added 0.07%, and the tech-heavy Nasdaq lost 0.05%.

Coming into today, shares of the cloud-based web development company had gained 3.34% in the past month. In that same time, the Computer and Technology sector gained 5.93%, while the S&P 500 gained 1.05%.

The investment community will be closely monitoring the performance of Wix.com in its forthcoming earnings report. On that day, Wix.com is projected to report earnings of $1.61 per share, which would represent year-over-year growth of 31.97%. Meanwhile, our latest consensus estimate is calling for revenue of $461.34 million, up 14.26% from the prior-year quarter.

WIX's full-year Zacks Consensus Estimates are calling for earnings of $6.09 per share and revenue of $1.76 billion. These results would represent year-over-year changes of +38.72% and +12.8%, respectively.

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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Wix.com is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Wix.com is presently being traded at a Forward P/E ratio of 37.15. This valuation marks a premium compared to its industry's average Forward P/E of 28.68.

One should further note that WIX currently holds a PEG ratio of 1.51. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computers - IT Services industry currently had an average PEG ratio of 2.83 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 64, finds itself in the top 26% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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