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Wix.com (WIX) Stock Slides as Market Rises: Facts to Know Before You Trade

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Wix.com (WIX - Free Report) closed the latest trading day at $222.78, indicating a -0.92% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 0.36%. Elsewhere, the Dow saw a downswing of 0.28%, while the tech-heavy Nasdaq appreciated by 0.51%.

Shares of the cloud-based web development company witnessed a gain of 0.16% over the previous month, beating the performance of the Computer and Technology sector with its of 0% and underperforming the S&P 500's gain of 2.11%.

The upcoming earnings release of Wix.com will be of great interest to investors. The company's earnings report is expected on February 19, 2025. The company is forecasted to report an EPS of $1.61, showcasing a 31.97% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $461.34 million, up 14.26% from the year-ago period.

Investors should also take note of any recent adjustments to analyst estimates for Wix.com. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 witnessed a 3.89% increase. Wix.com presently features a Zacks Rank of #2 (Buy).

Investors should also note Wix.com's current valuation metrics, including its Forward P/E ratio of 30.75. Its industry sports an average Forward P/E of 30.27, so one might conclude that Wix.com is trading at a premium comparatively.

One should further note that WIX currently holds a PEG ratio of 1.25. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Computers - IT Services industry had an average PEG ratio of 2.67.

The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 44, finds itself in the top 18% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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