Wix.com (WIX) closed the most recent trading day at $165.80, moving +1.46% from the previous trading session. This change outpaced the S&P 500's 1.23% gain on the day. On the other hand, the Dow registered a gain of 1.02%, and the technology-centric Nasdaq increased by 1.43%.
Prior to today's trading, shares of the cloud-based web development company had gained 3.37% over the past month. This has outpaced the Computer and Technology sector's loss of 0.04% and the S&P 500's loss of 0.54% in that time.
The investment community will be closely monitoring the performance of Wix.com in its forthcoming earnings report. The company is scheduled to release its earnings on November 20, 2024. The company's upcoming EPS is projected at $1.44, signifying a 30.91% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $443.27 million, showing a 12.55% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.85 per share and revenue of $1.75 billion, which would represent changes of +33.26% and +12.37%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Wix.com. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Wix.com is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Wix.com is currently being traded at a Forward P/E ratio of 27.94. For comparison, its industry has an average Forward P/E of 27.21, which means Wix.com is trading at a premium to the group.
Investors should also note that WIX has a PEG ratio of 1.25 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. WIX's industry had an average PEG ratio of 2.79 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 37, placing it within the top 15% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
