Investment Education

Wix.com (WIX) ended the recent trading session at $184.01, demonstrating a -0.18% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.61% for the day. At the same time, the Dow lost 0.47%, and the tech-heavy Nasdaq lost 0.64%.

The cloud-based web development company's stock has climbed by 7.31% in the past month, exceeding the Computer and Technology sector's gain of 3.03% and the S&P 500's gain of 3.07%.

The investment community will be closely monitoring the performance of Wix.com in its forthcoming earnings report. The company is scheduled to release its earnings on November 20, 2024. The company's upcoming EPS is projected at $1.44, signifying a 30.91% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $443.27 million, up 12.55% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.85 per share and revenue of $1.75 billion, indicating changes of +33.26% and +12.37%, respectively, compared to the previous year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Wix.com. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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.com currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Wix.com is holding a Forward P/E ratio of 31.52. This denotes a premium relative to the industry's average Forward P/E of 29.14.

We can additionally observe that WIX currently boasts a PEG ratio of 1.41. 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 average PEG ratio for the Computers - IT Services industry stood at 2.99 at the close of the market yesterday.