Wix.com Reports Solid Performance Ahead of Earnings Release
Stock Movement Outshines Major Indices
Wix.com (WIX) closed the most recent trading day at $165.80, reflecting a gain of +1.46% from the previous session. This performance surpassed the S&P 500’s increase of 1.23%. Similarly, the Dow rose by 1.02%, while the tech-heavy Nasdaq saw a boost of 1.43%.
A Growing Trend for Wix.com
In the month leading up to today, shares of Wix.com have risen by 3.37%. This growth stands in contrast to the Computer and Technology sector, which faced a minor decline of 0.04%, and the S&P 500’s drop of 0.54% during the same timeframe.
Upcoming Earnings Report on the Horizon
Wix.com’s forthcoming earnings report, scheduled for November 20, 2024, is on investors’ radar. Analysts project the company’s earnings per share (EPS) at $1.44, indicating a significant 30.91% increase compared to the same quarter last year. Revenue estimates also look promising, with an expected $443.27 million, reflecting a 12.55% growth from the previous year.
Full Year Expectations and Analyst Insight
For the complete fiscal year, the Zacks Consensus Estimates suggest earnings of $5.85 per share and total revenue of $1.75 billion, representing increases of +33.26% and +12.37% respectively, compared to the prior year. Investors should closely observe any recent changes in analyst estimates for Wix.com, as these often indicate shifts in short-term business trends. Positive revisions can be a favorable sign for the company’s outlook.
Understanding Estimate Changes and Zacks Rank
Research shows that changes in estimates are linked to stock price movements. To track this, Zacks has developed the Zacks Rank, a system that assesses these estimate changes and classifies stocks on a scale from #1 (Strong Buy) to #5 (Strong Sell). This system has shown a strong track record, with #1 stocks yielding an average annual return of +25% since 1988. Currently, Wix.com holds a Zacks Rank of #3 (Hold), with no changes in the consensus EPS estimate over the past month.
Valuation Metrics and Industry Context
Wix.com currently trades at a Forward P/E ratio of 27.94, slightly above the industry average of 27.21, indicating a premium valuation. Additionally, Wix boasts a PEG ratio of 1.25, which factors in the stock’s expected earnings growth, compared to its industry’s average PEG ratio of 2.79 as of yesterday’s close.
Industry Rankings and Performance Insights
The Computers – IT Services industry, within the broader Computer and Technology sector, holds a Zacks Industry Rank of 37, placing it in the top 15% of over 250 industries. This ranking evaluates the strength of industry groups based on the average Zacks Rank of their constituent stocks. Notably, industries in the top 50% have historically outperformed those in the bottom half by a factor of 2 to 1.
For More Information
You can find additional details on these metrics and more at Zacks.com.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
