Why Wix.com Stock Rose 10.6% in March

What happened

Shares of Wix.com (NASDAQ: WIX) jumped more than 10% last month, according to data provided by S&P Global Market Intelligence, after receiving a buy rating from Guggenheim analyst Ken Wong.

So what

Wong placed a $130 price target on Wix.com's stock. He highlighted the company's massive addressable market -- which management pegs at $300 billion -- and subscription-based recurring revenue streams as reasons why investors should be willing to pay a higher price for the stock.

"We believe the company's transparent and consistent business model enables management to pursue optimal growth opportunities and provides us with a base valuation of $130 and a floor of $60 ($5.1 billion in collections) with potential upside nearing $180," Wong said.

Now what

Wix.com's shares have pulled back about 4% so far in April. At approximately $116 per share, the stock is now about 12% below Wong's price target -- which may prove conservative.

As a leading cloud-based platform for building websites, Wix has long runways for growth still ahead. Its 4 million premium subscribers represent only a small fraction of its 142 million users. The company is making steady progress in converting more of its users into premium paying customers, even as it continues to grow its total user base at a rapid clip. Premium subscriptions jumped 24% in the fourth quarter, while registered users rose 19%. Moreover, a host of new tools should entice even more users to pay up for Wix's advanced features.

All told, Wix.com's current market of less than $6 billion understates its long-term market opportunity. As such, investors may want to consider buying some shares today.

Find out why Wix.com is one of the 10 best stocks to buy now

Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*

Tom and David just revealed their ten top stock picks for investors to buy right now. Wix.com is on the list -- but there are nine others you may be overlooking.

Click here to get access to the full list!

*Stock Advisor returns as of March 1, 2019

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Wix.com. The Motley Fool has a disclosure policy.