Chewy (CHWY) closed the most recent trading day at $36.31, moving -2.52% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.4%. Meanwhile, the Dow gained 0.47%, and the Nasdaq, a tech-heavy index, added 0.24%.
Prior to today's trading, shares of the online pet store had lost 14.23% lagged the Retail-Wholesale sector's gain of 4.05% and the S&P 500's gain of 4.61%.
The investment community will be closely monitoring the performance of Chewy in its forthcoming earnings report. The company's upcoming EPS is projected at $0.33, signifying a 37.50% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $3.08 billion, indicating a 7.83% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.28 per share and a revenue of $12.48 billion, signifying shifts of +23.08% and +5.21%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Chewy. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Chewy holds a Zacks Rank of #3 (Hold).
From a valuation perspective, Chewy is currently exchanging hands at a Forward P/E ratio of 29.15. This signifies a premium in comparison to the average Forward P/E of 23.01 for its industry.
It is also worth noting that CHWY currently has a PEG ratio of 3.14. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 1.68.
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 Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Chewy (CHWY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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