Chewy (CHWY) closed the most recent trading day at $40.95, moving +1.14% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 0.01%. Elsewhere, the Dow saw a downswing of 0.08%, while the tech-heavy Nasdaq appreciated by 0.03%.
The stock of online pet store has risen by 3.37% in the past month, lagging the Retail-Wholesale sector's gain of 3.44% and the S&P 500's gain of 3.47%.
The upcoming earnings release of Chewy will be of great interest to investors. 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. Our most recent consensus estimate is calling for quarterly revenue 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.
It is also important to note the recent changes to analyst estimates for Chewy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 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 currently trading at a Forward P/E ratio of 31.68. This signifies a premium in comparison to the average Forward P/E of 19.52 for its industry.
Investors should also note that CHWY has a PEG ratio of 3.41 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Internet - Commerce industry held an average PEG ratio of 1.52.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 152, positioning it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much 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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