Chewy (CHWY) closed the most recent trading day at $38.30, moving +1.3% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 0.4% for the day. On the other hand, the Dow registered a loss of 0.98%, and the technology-centric Nasdaq increased by 0.18%.
The online pet store's shares have seen a decrease of 9.24% over the last month, not keeping up with the Retail-Wholesale sector's gain of 4.14% and the S&P 500's gain of 4.97%.
The investment community will be paying close attention to the earnings performance of Chewy in its upcoming release. It is anticipated that the company will report an EPS of $0.33, marking a 37.5% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.08 billion, up 7.83% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.28 per share and revenue of $12.48 billion, indicating changes of +23.08% and +5.21%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Chewy. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Chewy presently features a Zacks Rank of #3 (Hold).
In the context of valuation, Chewy is at present trading with a Forward P/E ratio of 29.58. For comparison, its industry has an average Forward P/E of 21.92, which means Chewy is trading at a premium to the group.
Also, we should mention that CHWY has a PEG ratio of 3.18. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Internet - Commerce industry stood at 1.4 at the close of the market yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 66, this industry ranks in the top 27% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Chewy (CHWY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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