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Wix.com (WIX) Declines More Than Market: Some Information for Investors

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The latest trading session saw Wix.com (WIX - Free Report) ending at $172.47, denoting a -0.53% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily loss of 0.18%. Elsewhere, the Dow lost 0.8%, while the tech-heavy Nasdaq added 0.27%.

The cloud-based web development company's shares have seen an increase of 7.94% over the last month, surpassing the Computer and Technology sector's gain of 6.6% and the S&P 500's gain of 4.46%.

The investment community will be paying close attention to the earnings performance of Wix.com in its upcoming release. The company is forecasted to report an EPS of $1.44, showcasing a 30.91% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $443.27 million, indicating a 12.55% increase compared to the same quarter of the previous year.

WIX's full-year Zacks Consensus Estimates are calling for earnings of $5.85 per share and revenue of $1.75 billion. These results would represent year-over-year changes of +33.26% and +12.37%, respectively.

Any recent changes to analyst estimates for Wix.com should also be noted by investors. 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 company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 past month, there's been no change in the Zacks Consensus EPS estimate. Wix.com presently features a Zacks Rank of #3 (Hold).

Digging into valuation, Wix.com currently has a Forward P/E ratio of 29.65. This represents a premium compared to its industry's average Forward P/E of 29.61.

We can also see that WIX currently has a PEG ratio of 1.32. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Computers - IT Services industry held an average PEG ratio of 2.85.

The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 22% 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.

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


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