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Wix.com (WIX) Advances While Market Declines: Some Information for Investors

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Wix.com (WIX - Free Report) closed the most recent trading day at $161.03, moving +1.62% from the previous trading session. This change outpaced the S&P 500's 0.11% loss on the day. Meanwhile, the Dow gained 0.91%, and the Nasdaq, a tech-heavy index, lost 0.82%.

Coming into today, shares of the cloud-based web development company had gained 6.38% in the past month. In that same time, the Computer and Technology sector gained 8.76%, while the S&P 500 gained 5.17%.

Investors will be eagerly watching for the performance of Wix.com in its upcoming earnings disclosure. The company is expected to report EPS of $1.75, up 4.79% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $487.58 million, indicating a 11.89% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.13 per share and a revenue of $1.98 billion, representing changes of +11.58% and +12.7%, respectively, from the prior year.

Any recent changes to analyst estimates for Wix.com should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, Wix.com holds a Zacks Rank of #3 (Hold).

In terms of valuation, Wix.com is currently trading at a Forward P/E ratio of 22.23. This indicates a premium in contrast to its industry's Forward P/E of 19.73.

We can additionally observe that WIX currently boasts a PEG ratio of 1.08. 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. By the end of yesterday's trading, the Computers - IT Services industry had an average PEG ratio of 2.17.

The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 43, putting it in the top 18% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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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