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Wix.com (WIX) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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Wix.com (WIX - Free Report) closed the most recent trading day at $90.32, moving -1.87% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.19%. Elsewhere, the Dow lost 0.8%, while the tech-heavy Nasdaq lost 0.1%.

The stock of cloud-based web development company has fallen by 5.84% in the past month, lagging the Computer and Technology sector's gain of 2.62% and the S&P 500's gain of 2.26%.

Analysts and investors alike will be keeping a close eye on the performance of Wix.com in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.36, reflecting a 29.53% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $528.03 million, indicating a 14.68% growth compared to the corresponding quarter of the prior 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 0%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Wixcom. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.92% lower. Wix.com presently features a Zacks Rank of #5 (Strong Sell).

Investors should also note Wix.com's current valuation metrics, including its Forward P/E ratio of 14.07. This represents a discount compared to its industry average Forward P/E of 17.84.

It is also worth noting that WIX currently has a PEG ratio of 0.76. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computers - IT Services industry currently had an average PEG ratio of 1.53 as of yesterday's close.

The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 175, placing it within the bottom 29% of over 250 industries.

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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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