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Wix.com (WIX) Stock Declines While Market Improves: Some Information for Investors

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In the latest trading session, Wix.com (WIX - Free Report) closed at $165.63, marking a -0.25% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.28% for the day. Elsewhere, the Dow gained 0.53%, while the tech-heavy Nasdaq added 0.4%.

The cloud-based web development company's shares have seen an increase of 1.49% over the last month, not keeping up with the Computer and Technology sector's gain of 4.22% and the S&P 500's gain of 3.78%.

Investors will be eagerly watching for the performance of Wix.com in its upcoming earnings disclosure. In that report, analysts expect Wix.com to post earnings of $1.32 per share. This would mark year-over-year growth of 4.76%. Meanwhile, our latest consensus estimate is calling for revenue of $433.67 million, up 11.2% from the prior-year quarter.

WIX's full-year Zacks Consensus Estimates are calling for earnings of $5.46 per share and revenue of $1.75 billion. These results would represent year-over-year changes of +24.37% and +12.24%, respectively.

Any recent changes to analyst estimates for Wix.com should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Wix.com is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Wix.com is holding a Forward P/E ratio of 30.39. This expresses a premium compared to the average Forward P/E of 28.84 of its industry.

Also, we should mention that WIX has a PEG ratio of 1.37. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computers - IT Services industry currently had an average PEG ratio of 3.16 as of yesterday's close.

The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 76, which puts it in the top 31% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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