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Wix.com (WIX) Exceeds Market Returns: Some Facts to Consider

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Wix.com (WIX - Free Report) ended the recent trading session at $171.74, demonstrating a +1.18% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.4%. Elsewhere, the Dow gained 0.62%, while the tech-heavy Nasdaq added 0.6%.

The cloud-based web development company's stock has climbed by 3.51% in the past month, exceeding the Computer and Technology sector's gain of 0.91% and the S&P 500's gain of 1.71%.

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 $1.44, reflecting a 30.91% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $443.27 million, indicating a 12.55% upward movement from the same quarter last year.

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.

Any recent changes to analyst estimates for Wix.com should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Wix.com is holding a Zacks Rank of #3 (Hold) right now.

Looking at valuation, Wix.com is presently trading at a Forward P/E ratio of 29.03. This expresses a premium compared to the average Forward P/E of 27.83 of its industry.

Meanwhile, WIX's PEG ratio is currently 1.3. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Computers - IT Services industry had an average PEG ratio of 2.76.

The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 67, positioning it in the top 27% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks 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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