We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Wix.com (WIX) Registers a Bigger Fall Than the Market: Important Facts to Note
Read MoreHide Full Article
Wix.com (WIX - Free Report) closed the most recent trading day at $100.11, moving -1.13% from the previous trading session. This move lagged the S&P 500's daily loss of 0.34%. Meanwhile, the Dow experienced a drop of 0.94%, and the technology-dominated Nasdaq saw an increase of 0.16%.
The cloud-based web development company's stock has dropped by 4.2% in the past month, falling short of the Computer and Technology sector's loss of 1% and the S&P 500's gain of 1.19%.
Investors will be eagerly watching for the performance of Wix.com in its upcoming earnings disclosure. The company is expected to report EPS of $1.36, down 29.53% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $528.03 million, up 14.68% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.93 per share and revenue of $2 billion, indicating changes of +8.45% and 0%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Wixcom. These revisions help to show the ever-changing nature 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 last 30 days, the Zacks Consensus EPS estimate has moved 1.92% lower. At present, Wix.com boasts a Zacks Rank of #4 (Sell).
With respect to valuation, Wix.com is currently being traded at a Forward P/E ratio of 15.48. This expresses a discount compared to the average Forward P/E of 17.42 of its industry.
It is also worth noting that WIX currently has a PEG ratio of 0.83. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Computers - IT Services stocks are, on average, holding a PEG ratio of 1.52 based on yesterday's closing prices.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 109, putting it in the top 45% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Wix.com (WIX) Registers a Bigger Fall Than the Market: Important Facts to Note
Wix.com (WIX - Free Report) closed the most recent trading day at $100.11, moving -1.13% from the previous trading session. This move lagged the S&P 500's daily loss of 0.34%. Meanwhile, the Dow experienced a drop of 0.94%, and the technology-dominated Nasdaq saw an increase of 0.16%.
The cloud-based web development company's stock has dropped by 4.2% in the past month, falling short of the Computer and Technology sector's loss of 1% and the S&P 500's gain of 1.19%.
Investors will be eagerly watching for the performance of Wix.com in its upcoming earnings disclosure. The company is expected to report EPS of $1.36, down 29.53% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $528.03 million, up 14.68% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.93 per share and revenue of $2 billion, indicating changes of +8.45% and 0%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Wixcom. These revisions help to show the ever-changing nature 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 last 30 days, the Zacks Consensus EPS estimate has moved 1.92% lower. At present, Wix.com boasts a Zacks Rank of #4 (Sell).
With respect to valuation, Wix.com is currently being traded at a Forward P/E ratio of 15.48. This expresses a discount compared to the average Forward P/E of 17.42 of its industry.
It is also worth noting that WIX currently has a PEG ratio of 0.83. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Computers - IT Services stocks are, on average, holding a PEG ratio of 1.52 based on yesterday's closing prices.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 109, putting it in the top 45% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.