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Wix.com (WIX) closed the latest trading day at $223.90, indicating a -1.03% change from the previous session's end. The stock's performance was behind the S&P 500's daily loss of 0.04%. At the same time, the Dow added 0.07%, and the tech-heavy Nasdaq lost 0.05%.
Coming into today, shares of the cloud-based web development company had gained 3.34% in the past month. In that same time, the Computer and Technology sector gained 5.93%, while the S&P 500 gained 1.05%.
The investment community will be closely monitoring the performance of Wix.com in its forthcoming earnings report. On that day, Wix.com is projected to report earnings of $1.61 per share, which would represent year-over-year growth of 31.97%. Meanwhile, our latest consensus estimate is calling for revenue of $461.34 million, up 14.26% from the prior-year quarter.
WIX's full-year Zacks Consensus Estimates are calling for earnings of $6.09 per share and revenue of $1.76 billion. These results would represent year-over-year changes of +38.72% and +12.8%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Wix.com. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Wix.com is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Wix.com is presently being traded at a Forward P/E ratio of 37.15. This valuation marks a premium compared to its industry's average Forward P/E of 28.68.
One should further note that WIX currently holds a PEG ratio of 1.51. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computers - IT Services industry currently had an average PEG ratio of 2.83 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 64, finds itself in the top 26% echelons of all 250+ industries.