Wix.com (WIX) closed at $242.39 in the latest trading session, marking a +0.1% move from the prior day. This move lagged the S&P 500's daily gain of 0.53%. Meanwhile, the Dow gained 0.38%, and the Nasdaq, a tech-heavy index, added 0.25%.
The cloud-based web development company's shares have seen an increase of 12.86% over the last month, surpassing the Computer and Technology sector's loss of 0.75% and the S&P 500's gain of 1.24%.
The upcoming earnings release of Wix.com will be of great interest to investors. The company's earnings report is expected on February 19, 2025. It is anticipated that the company will report an EPS of $1.61, marking a 31.97% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $461.34 million, up 14.26% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for Wix.com. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has moved 3.89% higher. Wix.com is holding a Zacks Rank of #2 (Buy) right now.
Looking at valuation, Wix.com is presently trading at a Forward P/E ratio of 33.12. This valuation marks a premium compared to its industry's average Forward P/E of 29.44.
We can also see that WIX currently has a PEG ratio of 1.35. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computers - IT Services industry had an average PEG ratio of 2.78 as trading concluded yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 73, finds itself in the top 30% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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