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Why the Market Dipped But Wix.com (WIX) Gained Today
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In the latest market close, Wix.com (WIX - Free Report) reached $137.56, with a +0.11% movement compared to the previous day. The stock exceeded the S&P 500, which registered a loss of 0.72% for the day. Meanwhile, the Dow lost 1%, and the Nasdaq, a tech-heavy index, lost 0.95%.
Shares of the cloud-based web development company witnessed a loss of 1.55% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 2.34% and the S&P 500's gain of 2.16%.
The upcoming earnings release of Wix.com will be of great interest to investors. The company is expected to report EPS of $1.03, up 13.19% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $417.71 million, reflecting a 11.66% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.80 per share and revenue of $1.78 billion. These totals would mark changes of +9.34% and +13.93%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Wix.com. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Wix.com is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, Wix.com currently has a Forward P/E ratio of 28.63. This represents a premium compared to its industry's average Forward P/E of 25.75.
It's also important to note that WIX currently trades at a PEG ratio of 1.15. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computers - IT Services was holding an average PEG ratio of 2.3 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 55, placing it within the top 22% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Why the Market Dipped But Wix.com (WIX) Gained Today
In the latest market close, Wix.com (WIX - Free Report) reached $137.56, with a +0.11% movement compared to the previous day. The stock exceeded the S&P 500, which registered a loss of 0.72% for the day. Meanwhile, the Dow lost 1%, and the Nasdaq, a tech-heavy index, lost 0.95%.
Shares of the cloud-based web development company witnessed a loss of 1.55% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 2.34% and the S&P 500's gain of 2.16%.
The upcoming earnings release of Wix.com will be of great interest to investors. The company is expected to report EPS of $1.03, up 13.19% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $417.71 million, reflecting a 11.66% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.80 per share and revenue of $1.78 billion. These totals would mark changes of +9.34% and +13.93%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Wix.com. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Wix.com is currently sporting a Zacks Rank of #2 (Buy).
Digging into valuation, Wix.com currently has a Forward P/E ratio of 28.63. This represents a premium compared to its industry's average Forward P/E of 25.75.
It's also important to note that WIX currently trades at a PEG ratio of 1.15. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computers - IT Services was holding an average PEG ratio of 2.3 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 55, placing it within the top 22% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.