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Here's Why Wix.com (WIX) Fell More Than Broader Market
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In the latest market close, Wix.com (WIX - Free Report) reached $238.89, with a -1.44% movement compared to the previous day. The stock fell short of the S&P 500, which registered a loss of 0.51% for the day. Meanwhile, the Dow lost 0.75%, and the Nasdaq, a tech-heavy index, lost 0.28%.
The cloud-based web development company's shares have seen an increase of 11.94% over the last month, surpassing the Computer and Technology sector's gain of 0.79% and the S&P 500's gain of 2.87%.
The investment community will be paying close attention to the earnings performance of Wix.com in its upcoming release. The company is slated to reveal its earnings on February 19, 2025. It is anticipated that the company will report an EPS of $1.61, marking a 31.97% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $461.34 million, indicating a 14.26% increase compared to the same quarter of the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Wix.com. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.89% higher. As of now, Wix.com holds a Zacks Rank of #2 (Buy).
Looking at valuation, Wix.com is presently trading at a Forward P/E ratio of 33.15. This expresses a premium compared to the average Forward P/E of 29.81 of its industry.
Also, we should mention that WIX has a PEG ratio of 1.35. 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 67, which puts it in the top 27% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Here's Why Wix.com (WIX) Fell More Than Broader Market
In the latest market close, Wix.com (WIX - Free Report) reached $238.89, with a -1.44% movement compared to the previous day. The stock fell short of the S&P 500, which registered a loss of 0.51% for the day. Meanwhile, the Dow lost 0.75%, and the Nasdaq, a tech-heavy index, lost 0.28%.
The cloud-based web development company's shares have seen an increase of 11.94% over the last month, surpassing the Computer and Technology sector's gain of 0.79% and the S&P 500's gain of 2.87%.
The investment community will be paying close attention to the earnings performance of Wix.com in its upcoming release. The company is slated to reveal its earnings on February 19, 2025. It is anticipated that the company will report an EPS of $1.61, marking a 31.97% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $461.34 million, indicating a 14.26% increase compared to the same quarter of the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Wix.com. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.89% higher. As of now, Wix.com holds a Zacks Rank of #2 (Buy).
Looking at valuation, Wix.com is presently trading at a Forward P/E ratio of 33.15. This expresses a premium compared to the average Forward P/E of 29.81 of its industry.
Also, we should mention that WIX has a PEG ratio of 1.35. 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 67, which puts it in the top 27% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.