Chewy (CHWY) ended the recent trading session at $26.97, demonstrating a +1.93% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily loss of 0.54%. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq lost 1.18%.
Shares of the online pet store have depreciated by 14.7% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 5.23%, and the S&P 500's gain of 0.58%.
Investors will be eagerly watching for the performance of Chewy in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.28, signifying steadiness compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $3.26 billion, showing a 0.27% escalation compared to the year-ago quarter.
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 +6.21%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Chewy. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, Chewy boasts a Zacks Rank of #3 (Hold).
In the context of valuation, Chewy is at present trading with a Forward P/E ratio of 16.9. This represents a premium compared to its industry average Forward P/E of 15.33.
Investors should also note that CHWY has a PEG ratio of 0.92 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Internet - Commerce industry held an average PEG ratio of 0.92.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 173, placing it within the bottom 30% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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
