Wix.com (WIX) closed the most recent trading day at $89.97, moving +0.04% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.23%. At the same time, the Dow lost 0.31%, and the tech-heavy Nasdaq lost 0.09%.
Prior to today's trading, shares of the cloud-based web development company had lost 0.74% over the past month. This has was narrower than the Computer and Technology sector's loss of 1.69% and the S&P 500's loss of 1.43% in that time.
Investors will be hoping for strength from Wix.com as it approaches its next earnings release. On that day, Wix.com is projected to report earnings of $0.73 per share, which would represent year-over-year growth of 1116.67%. Our most recent consensus estimate is calling for quarterly revenue 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.
It is also important to note the recent changes to analyst estimates for Wix.com. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Wix.com currently has a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Wix.com is holding a Forward P/E ratio of 26.83. Its industry sports an average Forward P/E of 24.85, so we one might conclude that Wix.com is trading at a premium comparatively.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 96, putting it in the top 39% 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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