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Wix.com (WIX) Registers a Bigger Fall Than the Market: Important Facts to Note
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In the latest trading session, Wix.com (WIX - Free Report) closed at $42.05, marking a -5.6% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 1.22%. Meanwhile, the Dow lost 0.98%, and the Nasdaq, a tech-heavy index, lost 1.35%.
Shares of the cloud-based web development company have depreciated by 16.61% over the course of the past month, underperforming the Computer and Technology sector's gain of 1.19%, and the S&P 500's gain of 1.56%.
The investment community will be paying close attention to the earnings performance of Wix.com in its upcoming release. On that day, Wix.com is projected to report earnings of $1.2 per share, which would represent a year-over-year decline of 47.37%. Our most recent consensus estimate is calling for quarterly revenue of $557.82 million, up 13.86% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.66 per share and a revenue of $2.27 billion, representing changes of -36.34% and +13.76%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Wixcom. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 96.88% downward. Currently, Wix.com is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Wix.com is presently trading at a Forward P/E ratio of 9.55. For comparison, its industry has an average Forward P/E of 14.42, which means Wix.com is trading at a discount to the group.
We can also see that WIX currently has a PEG ratio of 0.6. 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. By the end of yesterday's trading, the Computers - IT Services industry had an average PEG ratio of 1.11.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 170, which puts it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the 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.
View the Zacks #1 Rank List
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Wix.com (WIX) Registers a Bigger Fall Than the Market: Important Facts to Note
In the latest trading session, Wix.com (WIX - Free Report) closed at $42.05, marking a -5.6% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 1.22%. Meanwhile, the Dow lost 0.98%, and the Nasdaq, a tech-heavy index, lost 1.35%.
Shares of the cloud-based web development company have depreciated by 16.61% over the course of the past month, underperforming the Computer and Technology sector's gain of 1.19%, and the S&P 500's gain of 1.56%.
The investment community will be paying close attention to the earnings performance of Wix.com in its upcoming release. On that day, Wix.com is projected to report earnings of $1.2 per share, which would represent a year-over-year decline of 47.37%. Our most recent consensus estimate is calling for quarterly revenue of $557.82 million, up 13.86% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.66 per share and a revenue of $2.27 billion, representing changes of -36.34% and +13.76%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Wixcom. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 96.88% downward. Currently, Wix.com is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Wix.com is presently trading at a Forward P/E ratio of 9.55. For comparison, its industry has an average Forward P/E of 14.42, which means Wix.com is trading at a discount to the group.
We can also see that WIX currently has a PEG ratio of 0.6. 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. By the end of yesterday's trading, the Computers - IT Services industry had an average PEG ratio of 1.11.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 170, which puts it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the 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.