Chewy (CHWY) closed the most recent trading day at $28.39, moving -2.47% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.54%. Meanwhile, the Dow experienced a rise of 1.05%, and the technology-dominated Nasdaq saw an increase of 0.56%.
The online pet store's stock has dropped by 13.08% in the past month, falling short of the Retail-Wholesale sector's gain of 3.66% and the S&P 500's gain of 0.74%.
The investment community will be paying close attention to the earnings performance of Chewy in its upcoming release. The company's upcoming EPS is projected at $0.28, signifying steadiness compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $3.26 billion, indicating a 0.25% upward movement from the same quarter last year.
CHWY's full-year Zacks Consensus Estimates are calling for earnings of $1.28 per share and revenue of $12.6 billion. These results would represent year-over-year changes of +23.08% and 0%, respectively.
Investors should also note any recent changes to analyst estimates for Chewy. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 past month, the Zacks Consensus EPS estimate has moved 0.21% higher. Chewy is currently a Zacks Rank #3 (Hold).
With respect to valuation, Chewy is currently being traded at a Forward P/E ratio of 22.83. This denotes a premium relative to the industry average Forward P/E of 16.07.
Meanwhile, CHWY's PEG ratio is currently 1.24. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 1.07.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 179, this industry ranks in the bottom 27% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Chewy (CHWY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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