You probably know the company name. Perhaps because you use it for your own website. Or perhaps from their many commercials.
The point is that Wix.com (WIX) Is a thriving online company whose shares have tremendous upside potential. Especially after the recent earnings report that has estimates rising for the future…and yet shares are somehow 20% off the highs.
Opportunity is knocking!
WIX is best known as one of the leading companies that helps you build and host websites. Just like many of their competitors they have learned how to add more services and greatly increase the average revenue per user (ARPU) which is a key metric for subscription businesses like this one.
One of its best attributes is how well it scores for the Growth factors that are a part of the Zen Ratings model (in the top 4% for Growth of all stocks analyzed). Their Financial rating is not far behind in the top 6%.
This gels well with the average 17% earnings beat the past 4 quarter as the strength of Growth and Financial factors is a leading indicator of a company likely to beat earrings as shared in this article: Very Loud Earnings Whispers for Your Stocks.
This is a case where there is really no weakness in our 115 factor Zen Ratings review of the company which puts it in the top 2% of stock overall. This equates to A rating (aka Strong Buy).
See full Zen Ratings analysis of WIX here >
Indeed Wall Street analysts are taking note of WIX’s impressive story as well. This is why there is an average target price of $251 on shares. Yet some top analysts see an even brighter future:
$270 Deepak Mathivanan @ Cantor Fitzgerald (top 2% of analysts based on stock picking performance)
$280 from Ronald Josey @ Citgroup (top 3%)
$300 from Josh Beck @ Raymond James (top 2%)
All the above gives ample reason to snag WIX shares on the reason dip towards $200. My sense is that if the beat and raise traditions of the recent past hold up…that earnings growth will be even more impressive than advertised pulling the stock price up as well.
This leads me to “drop and drag” this thriving web builder stock into our portfolio now to enjoy ample upside in the months and years to come.
2 Next Steps
First, if you want ideas on how to find more stellar Zen Ratings stocks on your own…then please join me for this upcoming presentation on Wednesday February 26th where I review a new suite of tools we released to help you find, analyze and track the best stocks.
Register for "Unlock the Zen Ratings" >
Second, note that Wix.com (WIX) is just one of the stellar stocks found in my Zen Investor portfolio.
Each pick goes through my rigorous 4 step screening process to find more 100%+ stock winners.
To get your hands on all my current stock recommendations…plus the 2 new picks coming soon…then all you need to do is click the link below.
Discover the Zen Investor portfolio & Top Stocks >
Wishing you a world of investment success!
Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)
Editor-in-Chief of WallStreetZen
Want to get in touch? Email us at news@wallstreetzen.com.