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Wix.com (WIX) Stock Declines While Market Improves: Some Information for Investors
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Wix.com (WIX - Free Report) closed the latest trading day at $157.10, indicating a -0.6% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 0.09% for the day. At the same time, the Dow lost 0.1%, and the tech-heavy Nasdaq gained 0.16%.
The cloud-based web development company's shares have seen a decrease of 7.03% over the last month, not keeping up with the Computer and Technology sector's gain of 4.06% and the S&P 500's gain of 2.83%.
Analysts and investors alike will be keeping a close eye on the performance of Wix.com in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.32, reflecting a 4.76% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $433.67 million, indicating a 11.2% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.46 per share and revenue of $1.75 billion. These totals would mark changes of +24.37% and +12.24%, respectively, from last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Wix.com. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, there's been a 0.21% rise in the Zacks Consensus EPS estimate. As of now, Wix.com holds a Zacks Rank of #3 (Hold).
With respect to valuation, Wix.com is currently being traded at a Forward P/E ratio of 28.92. This signifies a premium in comparison to the average Forward P/E of 26.6 for its industry.
It's also important to note that WIX currently trades at a PEG ratio of 1.3. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computers - IT Services industry had an average PEG ratio of 2.95 as trading concluded yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 151, this industry ranks in the bottom 41% of all industries, numbering over 250.
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.
To follow WIX in the coming trading sessions, be sure to utilize Zacks.com.
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Wix.com (WIX) Stock Declines While Market Improves: Some Information for Investors
Wix.com (WIX - Free Report) closed the latest trading day at $157.10, indicating a -0.6% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 0.09% for the day. At the same time, the Dow lost 0.1%, and the tech-heavy Nasdaq gained 0.16%.
The cloud-based web development company's shares have seen a decrease of 7.03% over the last month, not keeping up with the Computer and Technology sector's gain of 4.06% and the S&P 500's gain of 2.83%.
Analysts and investors alike will be keeping a close eye on the performance of Wix.com in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.32, reflecting a 4.76% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $433.67 million, indicating a 11.2% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.46 per share and revenue of $1.75 billion. These totals would mark changes of +24.37% and +12.24%, respectively, from last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Wix.com. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, there's been a 0.21% rise in the Zacks Consensus EPS estimate. As of now, Wix.com holds a Zacks Rank of #3 (Hold).
With respect to valuation, Wix.com is currently being traded at a Forward P/E ratio of 28.92. This signifies a premium in comparison to the average Forward P/E of 26.6 for its industry.
It's also important to note that WIX currently trades at a PEG ratio of 1.3. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computers - IT Services industry had an average PEG ratio of 2.95 as trading concluded yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 151, this industry ranks in the bottom 41% of all industries, numbering over 250.
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.
To follow WIX in the coming trading sessions, be sure to utilize Zacks.com.