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Why Wix.com (WIX) Dipped More Than Broader Market Today

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Wix.com (WIX - Free Report) closed at $103.43 in the latest trading session, marking a -1.48% move from the prior day. This change lagged the S&P 500's 0.14% loss on the day. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq lost 0.24%.

Heading into today, shares of the cloud-based web development company had gained 10.28% over the past month, outpacing the Computer and Technology sector's gain of 0.2% and the S&P 500's gain of 0.94%.

The upcoming earnings release of Wix.com will be of great interest to investors. The company's upcoming EPS is projected at $1.36, signifying a 29.53% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $528.03 million, indicating a 14.68% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.93 per share and a revenue of $2 billion, signifying shifts of +8.45% and +13.41%, respectively, from the last 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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 4.02% fall in the Zacks Consensus EPS estimate. Currently, Wix.com is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Wix.com is currently trading at a Forward P/E ratio of 15.15. This signifies a discount in comparison to the average Forward P/E of 17.12 for its industry.

We can additionally observe that WIX currently boasts a PEG ratio of 0.82. 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 1.82.

The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 87, placing it within the top 36% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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