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Wix.com (WIX) Stock Dips While Market Gains: Key Facts

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Wix.com (WIX - Free Report) closed the most recent trading day at $149.61, moving -1.75% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.14%. On the other hand, the Dow registered a gain of 0.2%, and the technology-centric Nasdaq increased by 0.27%.

Shares of the cloud-based web development company witnessed a gain of 2.13% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 5.36%, and the S&P 500's gain of 3.97%.

The upcoming earnings release of Wix.com will be of great interest to investors. In that report, analysts expect Wix.com to post earnings of $1.75 per share. This would mark year-over-year growth of 4.79%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $487.58 million, up 11.89% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.13 per share and revenue of $1.98 billion. These totals would mark changes of +11.58% and +12.7%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Wixcom. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Wix.com boasts a Zacks Rank of #3 (Hold).

From a valuation perspective, Wix.com is currently exchanging hands at a Forward P/E ratio of 21.36. This signifies a premium in comparison to the average Forward P/E of 19.05 for its industry.

Also, we should mention that WIX has a PEG ratio of 1.03. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Computers - IT Services industry stood at 2.02 at the close of the market yesterday.

The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 78, this industry ranks in the top 32% of all industries, numbering over 250.

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.

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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