Chewy (CHWY) closed the most recent trading day at $36.21, moving +1.23% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.14%. At the same time, the Dow added 1.1%, and the tech-heavy Nasdaq gained 1.39%.
Heading into today, shares of the online pet store had lost 5.4% over the past month, lagging the Retail-Wholesale sector's gain of 1.54% and the S&P 500's gain of 2%.
Investors will be eagerly watching for the performance of Chewy in its upcoming earnings disclosure. 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. Simultaneously, our latest consensus estimate expects the revenue to be $3.08 billion, showing a 7.83% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.28 per share and a revenue of $12.48 billion, representing changes of +23.08% and +5.21%, respectively, from the prior 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Chewy is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Chewy is presently being traded at a Forward P/E ratio of 27.99. This indicates a premium in contrast to its industry's Forward P/E of 18.1.
Investors should also note that CHWY has a PEG ratio of 3.01 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Commerce industry had an average PEG ratio of 1.49 as trading concluded yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 167, putting it in the bottom 33% of all 250+ industries.
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.
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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