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Wix.com (WIX) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Wix.com (WIX) closed the most recent trading day at $140.95, moving +0.97% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.38%. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq added 0.73%.

Coming into today, shares of the cloud-based web development company had gained 4.22% in the past month. In that same time, the Computer and Technology sector gained 2.98%, while the S&P 500 gained 3.19%.

Wall Street will be looking for positivity from WIX as it approaches its next earnings report date. In that report, analysts expect WIX to post earnings of $0.15 per share. This would mark a year-over-year decline of 48.28%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $183.78 million, up 25.77% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.77 per share and revenue of $761.91 million. These totals would mark changes of -28.04% and +26.21%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for WIX. These recent revisions tend to reflect the evolving nature of short-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. The Zacks Consensus EPS estimate remained stagnant within the past month. WIX currently has a Zacks Rank of #5 (Strong Sell).

Digging into valuation, WIX currently has a Forward P/E ratio of 181.29. For comparison, its industry has an average Forward P/E of 19.15, which means WIX 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 77, which puts it in the top 31% 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.

To follow WIX in the coming trading sessions, be sure to utilize Zacks.com.

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