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Wix.com (WIX) Stock Falls Amid Market Uptick: What Investors Need to Know

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The most recent trading session ended with Wix.com (WIX - Free Report) standing at $163.25, reflecting a -1.87% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 0.55%. Elsewhere, the Dow gained 1.01%, while the tech-heavy Nasdaq lost 0.14%.

The cloud-based web development company's shares have seen a decrease of 17.11% over the last month, not keeping up with the Computer and Technology sector's loss of 8.88% and the S&P 500's loss of 6.22%.

The investment community will be closely monitoring the performance of Wix.com in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.66, reflecting a 28.68% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $472 million, indicating a 12.44% increase compared to the same quarter of the previous year.

WIX's full-year Zacks Consensus Estimates are calling for earnings of $7.55 per share and revenue of $1.99 billion. These results would represent year-over-year changes of +18.15% and +12.98%, respectively.

Any recent changes to analyst estimates for Wix.com should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Within the past 30 days, our consensus EPS projection remained stagnant. Wix.com presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Wix.com is presently being traded at a Forward P/E ratio of 22.03. This denotes a premium relative to the industry's average Forward P/E of 20.69.

Investors should also note that WIX has a PEG ratio of 1.12 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Computers - IT Services industry had an average PEG ratio of 1.94.

The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 74, finds itself in the top 30% echelons of all 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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