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Wix.com (WIX) Exceeds Market Returns: Some Facts to Consider

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In the latest close session, Wix.com (WIX - Free Report) was up +2.23% at $177.47. The stock outperformed the S&P 500, which registered a daily gain of 0.59%. Elsewhere, the Dow saw an upswing of 0.65%, while the tech-heavy Nasdaq appreciated by 0.44%.

The stock of cloud-based web development company has risen by 25% in the past month, leading the Computer and Technology sector's gain of 7.68% and the S&P 500's gain of 2.72%.

Analysts and investors alike will be keeping a close eye on the performance of Wix.com in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.45, indicating a 3.33% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $502.17 million, indicating a 12.93% growth compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.68 per share and a revenue of $1.99 billion, representing changes of +4.54% and +12.95%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Wixcom. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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. Wix.com currently has a Zacks Rank of #3 (Hold).

From a valuation perspective, Wix.com is currently exchanging hands at a Forward P/E ratio of 25.98. This represents a premium compared to its industry average Forward P/E of 16.25.

Meanwhile, WIX's PEG ratio is currently 1.27. 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 2.

The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 42% 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.

To follow WIX in the coming trading sessions, be sure to utilize Zacks.com.


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