Closer Look – WIX

WIX daily chart courtesy of MarketSmith

Quarterly Earnings – WIX per share earnings increased to 39 cents from 1 cent in the year ago quarter. Additionally, earnings growth has accelerated for 2 consecutive quarters (3 is ideal). Next earnings report is due Wednesday, 2/20 before the market open.

Quarterly Revenue – WIX revenue growth increased 40% in the most recent quarter following revenue growth of 41% and 49% in the previous 2 quarters.

Annual earnings growth – WIX is estimated to make a profit of $1.49 this year versus a profit of 91 cents last year. A 64% increase in annual earnings growth.

What’s new – WIX develops and markets an Internet service allowing users to create web content, manage design and marketing solutions through their online platform. WIX has recently released new marketing tools aimed at small businesses to drive more traffic to their websites. WIX was founded in 2006 and is headquartered in Tel Aviv, Israel.

Accumulation – WIX has an up/down volume ratio of 1.1 as shares climb the right side of a potential Stage 1 base towards a $121.45 standard pivot. WIX has an Accumulation/Distribution rating of B- and mutual fund participation has increased to 397 funds from 278 nearly a year ago. 

Running mates – WIX is in the Computer Software – Enterprise group which is currently ranked number 1 out of 197 industry groups. Strong peers in the group include COUP, TWLO and PAYC; however, the primary competition in the industry for WIX comes from GDDY.

Technical notes: Stage 1 base and $121.45 standard pivot with RS line in new highs. Straight up from bottom on right side may need handle to shakeout weak hands. Alternatively, strong EPS reaction could launch breakout – report on 2/20, before market open. Of note, pocket pivot on 2/12. Additionally, over 5% short float with 3+ days to cover. Price target near $145 on strong volume breakout.

WIX weekly chart courtesy of MarketSmith

Disclaimer: None of the presented content represents individual investment advice to buy or sell securities and the information provided is solely for informational, educational and entertainment purposes. Author has no position in WIX at the time of this writing.