Chewy (CHWY) closed at $33.29 in the latest trading session, marking a -1.54% move from the prior day. This move lagged the S&P 500's daily gain of 0.21%. Meanwhile, the Dow gained 1.18%, and the Nasdaq, a tech-heavy index, lost 0.25%.
Coming into today, shares of the online pet store had lost 12.32% in the past month. In that same time, the Retail-Wholesale sector gained 5.47%, while the S&P 500 gained 4.36%.
The investment community will be closely monitoring the performance of Chewy in its forthcoming earnings report. The company is forecasted to report an EPS of $0.31, showcasing a 55% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $3.09 billion, up 7.49% from the prior-year quarter.
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 +6.13%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Chewy. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.43% higher within the past month. At present, Chewy boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Chewy is currently being traded at a Forward P/E ratio of 26.58. This denotes a premium relative to the industry average Forward P/E of 21.83.
Also, we should mention that CHWY has a PEG ratio of 3.43. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 1.5.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 151, placing it within the bottom 39% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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