In the latest trading session, Chewy (CHWY) closed at $27.43, marking a -2.12% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.47% for the day. Elsewhere, the Dow saw an upswing of 0.04%, while the tech-heavy Nasdaq appreciated by 0.9%.
The online pet store's stock has dropped by 12.9% in the past month, falling short of the Retail-Wholesale sector's loss of 1.03% and the S&P 500's loss of 0.16%.
Market participants will be closely following the financial results of Chewy in its upcoming release. The company is forecasted to report an EPS of $0.28, showcasing no movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $3.26 billion, up 0.25% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.28 per share and revenue of $12.6 billion, which would represent changes of +23.08% and +6.21%, respectively, from the prior 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. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.14% decrease. Right now, Chewy possesses a Zacks Rank of #3 (Hold).
Investors should also note Chewy's current valuation metrics, including its Forward P/E ratio of 17.9. This indicates a premium in contrast to its industry's Forward P/E of 14.98.
Meanwhile, CHWY's PEG ratio is currently 0.98. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. CHWY's industry had an average PEG ratio of 0.98 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 158, positioning it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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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