Wix.com (WIX) Stock Sinks As Market Gains: What You Should Know
Wix.com (WIX) closed at $85.82 in the latest trading session, marking a -1.54% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.43%. Elsewhere, the Dow gained 0.19%, while the tech-heavy Nasdaq added 0.71%.
Coming into today, shares of the cloud-based web development company had lost 8.2% in the past month. In that same time, the Computer and Technology sector lost 1.56%, while the S&P 500 lost 2.1%.
Market participants will be closely following the financial results of Wix.com in its upcoming 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%. Meanwhile, our latest consensus estimate is calling for revenue of $389.47 million, up 12.62% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.35 per share and revenue of $1.55 billion, indicating changes of +2070.59% and +11.84%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Wix.com. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, Wix.com possesses a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Wix.com is currently trading at a Forward P/E ratio of 26. Its industry sports an average Forward P/E of 25.01, so 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. At present, this industry carries a Zacks Industry Rank of 36, placing it within the top 15% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Wix.com Ltd. (WIX) : Free Stock Analysis Report
