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The most recent trading session ended with Wix.com (WIX) standing at $163.25, reflecting a -1.87% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 0.55%. Elsewhere, the Dow gained 1.01%, while the tech-heavy Nasdaq lost 0.14%.
The cloud-based web development company's shares have seen a decrease of 17.11% over the last month, not keeping up with the Computer and Technology sector's loss of 8.88% and the S&P 500's loss of 6.22%.
The investment community will be closely monitoring the performance of Wix.com in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.66, reflecting a 28.68% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $472 million, indicating a 12.44% increase compared to the same quarter of the previous year.
WIX's full-year Zacks Consensus Estimates are calling for earnings of $7.55 per share and revenue of $1.99 billion. These results would represent year-over-year changes of +18.15% and +12.98%, respectively.
Any recent changes to analyst estimates for Wix.com should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Wix.com presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Wix.com is presently being traded at a Forward P/E ratio of 22.03. This denotes a premium relative to the industry's average Forward P/E of 20.69.
Investors should also note that WIX has a PEG ratio of 1.12 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Computers - IT Services industry had an average PEG ratio of 1.94.