In the latest trading session, Chewy (CHWY) closed at $37.44, marking a -1.76% move from the previous day. This move lagged the S&P 500's daily gain of 0.53%. Elsewhere, the Dow saw an upswing of 0.52%, while the tech-heavy Nasdaq appreciated by 0.52%.
The online pet store's shares have seen a decrease of 0.81% over the last month, surpassing the Retail-Wholesale sector's loss of 5.41% and falling behind the S&P 500's gain of 0.71%.
Market participants will be closely following the financial results of Chewy in its upcoming release. The company's earnings per share (EPS) are projected to be $0.31, reflecting a 55% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.1 billion, up 7.58% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.27 per share and a revenue of $12.59 billion, signifying shifts of +22.12% and +6.13%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Chewy. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection has moved 0.24% lower. Chewy is currently a Zacks Rank #3 (Hold).
Digging into valuation, Chewy currently has a Forward P/E ratio of 29.96. For comparison, its industry has an average Forward P/E of 21.34, which means Chewy is trading at a premium to the group.
Also, we should mention that CHWY has a PEG ratio of 3.86. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 1.38.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 71, placing it within the top 29% of over 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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