What happened

Shares of Wix.com (WIX -1.31%) gained 11% in April, according to data from S&P Global Market Intelligence. The website creation company's stock has been on a tear following strong fourth-quarter results in February and favorable analyst coverage. 

WIX Chart

WIX data by YCharts.

Its February earnings report arrived with 39% year-over-year sales growth, marking another strong performance for the business. Subsequent upgrades from analysts in March added to the stock's momentum -- and positive ratings coverage in April helped continue Wix's bullish run.  

Two pairs of hands organizing website design on paper.

Image source: Getty Images.

So what

Wedbush published a note on Wix.com on April 12, maintaining a buy rating on the stock and issuing a $142 price target. KeyBanc also initiated coverage on the company on April 29 and gave the stock a sector weight rating, suggesting a neutral stance. KeyBanc analyst Josh Beck's note on the company did highlight the business' impressive growth and innovation efforts that have made that expansion possible, but also touched on competitive pressures in the space and difficulty in mapping how it will progress.

Now what

Wix stock has continued to gain ground in May, despite market volatility stemming from last-minute difficulties in the trade talks between the U.S. and China. As of this writing, its shares are up 5.9% in the month.

WIX Chart

WIX data by YCharts.

The company is scheduled to post its first-quarter results on May 16, and is targeting for sales growth between 25% and 26% to reach revenue of $172.5 million. Wix also expects to grow sales between 25% and 26% for the full-year period. That marks a substantial deceleration from the over-40% annual sales growth that has recently been the norm but still looks like healthy performance. Free cash flow for the year is expected to rise between 33% and 38%.

Wix is priced for growth, trading at roughly 120 times expected earnings and nine times sales, but the business is expanding at a rapid clip and the stock could continue to outperform if the company delivers more encouraging evidence that users are joining and sticking with its platform and upgrading to new service offerings.