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Wix.com (WIX) Stock Sinks As Market Gains: Here's Why

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Wix.com (WIX - Free Report) ended the recent trading session at $150.50, demonstrating a -1.31% change from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.02%. Meanwhile, the Dow experienced a drop of 0.14%, and the technology-dominated Nasdaq saw an increase of 0.33%.

Heading into today, shares of the cloud-based web development company had lost 3.49% over the past month, lagging the Computer and Technology sector's gain of 6.31% and the S&P 500's gain of 4.93%.

The upcoming earnings release of Wix.com will be of great interest to investors. The company's earnings report is expected on August 6, 2025. The company's upcoming EPS is projected at $1.75, signifying a 4.79% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $487.58 million, up 11.89% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.13 per share and a revenue of $1.98 billion, signifying shifts of +11.58% and +12.7%, respectively, from the last year.

Any recent changes to analyst estimates for Wix.com should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

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, 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 an unchanged state. Wix.com is currently a Zacks Rank #5 (Strong Sell).

Looking at its valuation, Wix.com is holding a Forward P/E ratio of 21.39. Its industry sports an average Forward P/E of 19.78, so one might conclude that Wix.com is trading at a premium comparatively.

It's also important to note that WIX currently trades at a PEG ratio of 1.04. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Computers - IT Services industry held an average PEG ratio of 1.95.

The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 161, this industry ranks in the bottom 35% 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.

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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