Yahoo Finance Wix.com (WIX) Stock Drops Despite Market Gains: Important Facts to Note
The most recent trading session ended with Wix.com (WIX) standing at $161.33, reflecting a -1.39% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.77%. Meanwhile, the Dow gained 0.49%, and the Nasdaq, a tech-heavy index, added 0.95%.
Shares of the cloud-based web development company have appreciated by 20.58% over the course of the past month, outperforming the Computer and Technology sector's loss of 3.05% and the S&P 500's gain of 3.71%.
The investment community will be closely monitoring the performance of Wix.com in its forthcoming earnings report. On that day, Wix.com is projected to report earnings of $1.32 per share, which would represent year-over-year growth of 4.76%. Meanwhile, the latest consensus estimate predicts the revenue to be $433.67 million, indicating a 11.2% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.46 per share and a revenue of $1.75 billion, signifying shifts of +24.37% and +12.24%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Wix.com. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 moved 64.01% higher. As of now, Wix.com holds a Zacks Rank of #3 (Hold).
Looking at its valuation, Wix.com is holding a Forward P/E ratio of 29.94. For comparison, its industry has an average Forward P/E of 26.08, which means Wix.com is trading at a premium to the group.
Investors should also note that WIX has a PEG ratio of 1.35 right now. 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 average PEG ratio for the Computers - IT Services industry stood at 2.88 at the close of the market yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 144, finds itself in the bottom 43% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Wix.com Ltd. (WIX) : Free Stock Analysis Report
