Back to top

Image: Bigstock (WIX) Stock Sinks As Market Gains: What You Should Know

Read MoreHide Full Article (WIX - Free Report) closed the most recent trading day at $144.63, moving -0.4% from the previous trading session. This change lagged the S&P 500's daily gain of 0.97%. Meanwhile, the Dow gained 1.35%, and the Nasdaq, a tech-heavy index, added 1.39%.

Coming into today, shares of the cloud-based web development company had gained 6.3% in the past month. In that same time, the Computer and Technology sector lost 1.04%, while the S&P 500 gained 0.64%.

Wall Street will be looking for positivity from WIX as it approaches its next earnings report date. On that day, WIX is projected to report earnings of $0.17 per share, which would represent a year-over-year decline of 41.38%. 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 might also notice recent changes to analyst estimates for WIX. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. WIX is holding a Zacks Rank of #5 (Strong Sell) right now.

Digging into valuation, WIX currently has a Forward P/E ratio of 175.8. Its industry sports an average Forward P/E of 18.71, so we one might conclude that WIX is trading at a premium comparatively.

The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 102, putting it in the top 40% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

To follow WIX in the coming trading sessions, be sure to utilize

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE: Ltd. (WIX) - free report >>

Published in