Wix.com (WIX) Gains As Market Dips: What You Should Know
Wix.com (WIX) closed the most recent trading day at $95.32, moving +1.78% from the previous trading session. This change outpaced the S&P 500's 1.22% loss on the day. At the same time, the Dow lost 0.83%, and the tech-heavy Nasdaq lost 1.56%.
Heading into today, shares of the cloud-based web development company had gained 7.45% over the past month, outpacing the Computer and Technology sector's gain of 2.03% and the S&P 500's gain of 0.54% in that time.
Wall Street will be looking for positivity from Wix.com as it approaches its next earnings report date. In that report, analysts expect Wix.com to post earnings of $0.73 per share. This would mark year-over-year growth of 1116.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $389.47 million, up 12.62% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.35 per share and revenue of $1.55 billion, which would represent changes of +2070.59% and +11.84%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Wix.com. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. 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 27.94. For comparison, its industry has an average Forward P/E of 26.12, which means Wix.com is trading at a premium to the group.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 105, which puts it in the top 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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Wix.com Ltd. (WIX) : Free Stock Analysis Report
