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Wix.com (WIX) Rises But Trails Market: What Investors Should Know
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Wix.com (WIX - Free Report) closed the most recent trading day at $42.49, moving +1.05% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.09%. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq gained 1.91%.
Shares of the cloud-based web development company have depreciated by 23.25% over the course of the past month, underperforming the Computer and Technology sector's gain of 0.22%, and the S&P 500's gain of 0.29%.
Analysts and investors alike will be keeping a close eye on the performance of Wix.com in its upcoming earnings disclosure. In that report, analysts expect Wix.com to post earnings of $1.2 per share. This would mark a year-over-year decline of 47.37%. Meanwhile, our latest consensus estimate is calling for revenue of $557.82 million, up 13.86% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.66 per share and revenue of $2.27 billion, indicating changes of -36.34% and +13.76%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications 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.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 60.87% higher. As of now, Wix.com holds a Zacks Rank of #3 (Hold).
In the context of valuation, Wix.com is at present trading with a Forward P/E ratio of 9.02. This denotes a discount relative to the industry average Forward P/E of 14.1.
Meanwhile, WIX's PEG ratio is currently 0.57. 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. The Computers - IT Services industry currently had an average PEG ratio of 1.11 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 167, putting it in the bottom 32% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
View the Zacks #1 Rank List
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Wix.com (WIX) Rises But Trails Market: What Investors Should Know
Wix.com (WIX - Free Report) closed the most recent trading day at $42.49, moving +1.05% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.09%. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq gained 1.91%.
Shares of the cloud-based web development company have depreciated by 23.25% over the course of the past month, underperforming the Computer and Technology sector's gain of 0.22%, and the S&P 500's gain of 0.29%.
Analysts and investors alike will be keeping a close eye on the performance of Wix.com in its upcoming earnings disclosure. In that report, analysts expect Wix.com to post earnings of $1.2 per share. This would mark a year-over-year decline of 47.37%. Meanwhile, our latest consensus estimate is calling for revenue of $557.82 million, up 13.86% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.66 per share and revenue of $2.27 billion, indicating changes of -36.34% and +13.76%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications 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.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 60.87% higher. As of now, Wix.com holds a Zacks Rank of #3 (Hold).
In the context of valuation, Wix.com is at present trading with a Forward P/E ratio of 9.02. This denotes a discount relative to the industry average Forward P/E of 14.1.
Meanwhile, WIX's PEG ratio is currently 0.57. 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. The Computers - IT Services industry currently had an average PEG ratio of 1.11 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 167, putting it in the bottom 32% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.