Wix.com (WIX) closed the most recent trading day at $90.07, moving +2.61% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 2.91%. Meanwhile, the Dow experienced a rise of 2.49%, and the technology-dominated Nasdaq saw an increase of 3.83%.
The cloud-based web development company's stock has climbed by 20.98% in the past month, exceeding the Computer and Technology sector's loss of 9.45% and the S&P 500's loss of 7.64%.
The upcoming earnings release of Wix.com will be of great interest to investors. The company is predicted to post an EPS of $1.32, indicating a 14.84% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $543.79 million, showing a 14.81% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.27 per share and revenue of $2.29 billion, indicating changes of -14.34% and +14.8%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Wixcom. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 15.53% lower within the past month. As of now, Wix.com holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Wix.com is holding a Forward P/E ratio of 14. This denotes a premium relative to the industry average Forward P/E of 12.14.
We can also see that WIX currently has a PEG ratio of 0.67. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Computers - IT Services industry stood at 1.1 at the close of the market yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 101, which puts it in the top 42% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
