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Wix.com (WIX) Declines More Than Market: Some Information for Investors
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Wix.com (WIX - Free Report) ended the recent trading session at $71.74, demonstrating a -3.28% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.02%. On the other hand, the Dow registered a loss of 0.35%, and the technology-centric Nasdaq decreased by 0.15%.
The cloud-based web development company's stock has dropped by 10.99% in the past month, falling short of the Computer and Technology sector's gain of 3.58% and the S&P 500's gain of 2.05%.
Investors will be eagerly watching for the performance of Wix.com in its upcoming earnings disclosure. In that report, analysts expect Wix.com to post earnings of $1.32 per share. This would mark a year-over-year decline of 21.43%. At the same time, our most recent consensus estimate is projecting a revenue of $566.94 million, reflecting a 12.22% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.28 per share and revenue of $2.26 billion, indicating changes of -41.53% and +13.29%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Wix.com should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 remained unchanged. Wix.com is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Wix.com has a Forward P/E ratio of 17.34 right now. This indicates a premium in contrast to its industry's Forward P/E of 13.43.
One should further note that WIX currently holds a PEG ratio of 1.96. 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. WIX's industry had an average PEG ratio of 1.33 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 73, which puts it in the top 30% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
View the Zacks #1 Rank List
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Wix.com (WIX) Declines More Than Market: Some Information for Investors
Wix.com (WIX - Free Report) ended the recent trading session at $71.74, demonstrating a -3.28% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.02%. On the other hand, the Dow registered a loss of 0.35%, and the technology-centric Nasdaq decreased by 0.15%.
The cloud-based web development company's stock has dropped by 10.99% in the past month, falling short of the Computer and Technology sector's gain of 3.58% and the S&P 500's gain of 2.05%.
Investors will be eagerly watching for the performance of Wix.com in its upcoming earnings disclosure. In that report, analysts expect Wix.com to post earnings of $1.32 per share. This would mark a year-over-year decline of 21.43%. At the same time, our most recent consensus estimate is projecting a revenue of $566.94 million, reflecting a 12.22% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.28 per share and revenue of $2.26 billion, indicating changes of -41.53% and +13.29%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Wix.com should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 remained unchanged. Wix.com is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Wix.com has a Forward P/E ratio of 17.34 right now. This indicates a premium in contrast to its industry's Forward P/E of 13.43.
One should further note that WIX currently holds a PEG ratio of 1.96. 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. WIX's industry had an average PEG ratio of 1.33 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 73, which puts it in the top 30% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.