Back to top (WIX) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article (WIX - Free Report) closed at $137.34 in the latest trading session, marking a -1.56% move from the prior day. This move lagged the S&P 500's daily loss of 1.32%. Meanwhile, the Dow lost 1.41%, and the Nasdaq, a tech-heavy index, lost 1.51%.

Coming into today, shares of the cloud-based web development company had gained 1.99% in the past month. In that same time, the Computer and Technology sector lost 7.09%, while the S&P 500 lost 5.09%.

Investors will be hoping for strength from WIX as it approaches its next earnings release. The company is expected to report EPS of $0.17, down 41.38% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $183.78 million, up 25.77% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.83 per share and revenue of $761.91 million. These totals would mark changes of -22.43% and +26.21%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for WIX. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 172.54% lower. WIX is currently sporting a Zacks Rank of #5 (Strong Sell).

Digging into valuation, WIX currently has a Forward P/E ratio of 168.91. This valuation marks a premium compared to its industry's average Forward P/E of 19.31.

The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 92, which puts it in the top 36% 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.

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