Chewy (CHWY) closed at $34.22 in the latest trading session, marking a +2.03% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.69%. Elsewhere, the Dow gained 0.67%, while the tech-heavy Nasdaq added 0.82%.
The online pet store's shares have seen a decrease of 1.82% over the last month, not keeping up with the Retail-Wholesale sector's loss of 1.21% and the S&P 500's loss of 0.31%.
The investment community will be closely monitoring the performance of Chewy in its forthcoming earnings report. The company is scheduled to release its earnings on December 10, 2025. The company is expected to report EPS of $0.31, up 55% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $3.09 billion, showing a 7.49% escalation compared to the year-ago quarter.
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.
Investors might also notice recent changes to analyst estimates for Chewy. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.86% higher. Chewy is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Chewy currently has a Forward P/E ratio of 26.37. This denotes a premium relative to the industry average Forward P/E of 18.91.
Also, we should mention that CHWY has a PEG ratio of 3.4. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. CHWY's industry had an average PEG ratio of 1.38 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 90, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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