Wix.com (WIX) Gains But Lags Market: What You Should Know
In the latest market close, Wix.com (WIX) reached $128.92, with a +0.24% movement compared to the previous day. The stock lagged the S&P 500's daily gain of 0.76%. Elsewhere, the Dow saw an upswing of 0.59%, while the tech-heavy Nasdaq appreciated by 1.12%.
Shares of the cloud-based web development company have appreciated by 4.54% over the course of the past month, underperforming the Computer and Technology sector's gain of 4.99% and outperforming the S&P 500's gain of 2.5%.
The investment community will be closely monitoring the performance of Wix.com in its forthcoming earnings report. In that report, analysts expect Wix.com to post earnings of $0.98 per share. This would mark year-over-year growth of 60.66%. Our most recent consensus estimate is calling for quarterly revenue of $402.61 million, up 13.4% from the year-ago period.
It's also important for investors to be aware of any recent modifications to analyst estimates for Wix.com. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Wix.com currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Wix.com is currently trading at a Forward P/E ratio of 27.57. This denotes a premium relative to the industry's average Forward P/E of 27.52.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 64, placing it within the top 26% of over 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Wix.com Ltd. (WIX) : Free Stock Analysis Report
