Chewy (CHWY) closed at $34.74 in the latest trading session, marking a +1.37% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.73%. Elsewhere, the Dow gained 0.18%, while the tech-heavy Nasdaq added 1.21%.
Heading into today, shares of the online pet store had lost 14.33% over the past month, lagging the Retail-Wholesale sector's loss of 1.16% and the S&P 500's gain of 0.47%.
Market participants will be closely following the financial results of Chewy in its upcoming release. The company's upcoming EPS is projected at $0.33, signifying a 37.50% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $3.08 billion, showing a 7.83% escalation compared to the year-ago quarter.
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.
Investors should also pay attention to any latest changes in analyst estimates for Chewy. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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.
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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Chewy holds a Zacks Rank of #3 (Hold).
Investors should also note Chewy's current valuation metrics, including its Forward P/E ratio of 26.82. This denotes a premium relative to the industry average Forward P/E of 17.68.
One should further note that CHWY currently holds a PEG ratio of 2.89. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 1.51.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 162, positioning it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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