In the latest trading session, Chewy (CHWY) closed at $39.12, marking a +2.27% move from the previous day. This move outpaced the S&P 500's daily loss of 0.28%. Meanwhile, the Dow lost 0.52%, and the Nasdaq, a tech-heavy index, lost 0.08%.
The online pet store's shares have seen an increase of 8.94% over the last month, surpassing the Retail-Wholesale sector's loss of 3.47% and the S&P 500's gain of 4.03%.
Market participants will be closely following the financial results of Chewy in its upcoming release. It is anticipated that the company will report an EPS of $0.31, marking a 55% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $3.09 billion, indicating a 7.54% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.27 per share and a revenue of $12.59 billion, demonstrating changes of +22.12% and +6.11%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Chewy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 witnessed a 0.22% increase. Chewy currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Chewy is presently trading at a Forward P/E ratio of 30.12. This represents a premium compared to its industry average Forward P/E of 21.82.
It's also important to note that CHWY currently trades at a PEG ratio of 3.88. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Commerce industry had an average PEG ratio of 1.46 as trading concluded yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 68, putting it in the top 28% 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.
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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