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Why Chewy (CHWY) Outpaced the Stock Market Today

By Zacks Equity Research | August 26, 2025, 5:45 PM

Chewy (CHWY) ended the recent trading session at $40.75, demonstrating a +2.53% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.41%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 0.44%.

Shares of the online pet store have appreciated by 9.45% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 0.92%, and the S&P 500's gain of 0.87%.

The upcoming earnings release of Chewy will be of great interest to investors. The company's earnings report is expected on September 10, 2025. The company is expected to report EPS of $0.33, up 37.5% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $3.08 billion, reflecting a 7.83% rise from the equivalent quarter last year.

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.

It is also important to note the 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Chewy possesses a Zacks Rank of #2 (Buy).

In the context of valuation, Chewy is at present trading with a Forward P/E ratio of 31.09. This signifies a premium in comparison to the average Forward P/E of 19.64 for its industry.

One should further note that CHWY currently holds a PEG ratio of 3.35. 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 1.57 as trading concluded yesterday.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 161, finds itself in the bottom 35% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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This article originally published on Zacks Investment Research (zacks.com).

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