Chewy (CHWY) closed at $30.14 in the latest trading session, marking a -2.84% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.13%. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, lost 0.72%.
The online pet store's stock has dropped by 6.14% in the past month, falling short of the Retail-Wholesale sector's gain of 4.04% and the S&P 500's gain of 0.78%.
The investment community will be closely monitoring the performance of Chewy in its forthcoming earnings report. The company is predicted to post an EPS of $0.28, indicating constancy compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.26 billion, indicating a 0.25% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.28 per share and a revenue of $12.6 billion, indicating changes of +23.08% and +6.22%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Chewy. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.21% higher. Chewy presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Chewy is currently trading at a Forward P/E ratio of 24.33. This signifies a premium in comparison to the average Forward P/E of 16.35 for its industry.
Also, we should mention that CHWY has a PEG ratio of 1.33. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 1.12.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 191, putting it in the bottom 23% of all 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.
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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