In the latest close session, Chewy (CHWY) was up +1.55% at $24.17. The stock outperformed the S&P 500, which registered a daily gain of 0.56%. Elsewhere, the Dow saw an upswing of 0.26%, while the tech-heavy Nasdaq appreciated by 0.78%.
Prior to today's trading, shares of the online pet store had lost 27.81% lagged the Retail-Wholesale sector's loss of 5.72% and the S&P 500's loss of 1.27%.
The investment community will be paying close attention to the earnings performance 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, the Zacks Consensus Estimate for revenue is projecting net sales of $3.26 billion, up 0.25% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.28 per share and a revenue of $12.6 billion, signifying shifts of +23.08% and +6.21%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Chewy. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.14% lower. Chewy is currently a Zacks Rank #4 (Sell).
Investors should also note Chewy's current valuation metrics, including its Forward P/E ratio of 15.21. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 15.21.
Investors should also note that CHWY has a PEG ratio of 0.83 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 0.88.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 163, finds itself in the bottom 34% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Chewy (CHWY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
