In the latest market close, Chewy (CHWY) reached $44.60, with a +1.54% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 2.05%. On the other hand, the Dow registered a gain of 1.78%, and the technology-centric Nasdaq increased by 2.47%.
The the stock of online pet store has risen by 18.25% in the past month, leading the Retail-Wholesale sector's gain of 4.47% and the S&P 500's gain of 5.21%.
Investors will be eagerly watching for the performance of Chewy in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on June 11, 2025. On that day, Chewy is projected to report earnings of $0.34 per share, which would represent year-over-year growth of 9.68%. Alongside, our most recent consensus estimate is anticipating revenue of $3.07 billion, indicating a 6.85% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.23 per share and a revenue of $12.4 billion, signifying shifts of +18.27% and +4.52%, respectively, from the last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Chewy. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 remained unchanged. Currently, Chewy is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Chewy is currently being traded at a Forward P/E ratio of 35.68. Its industry sports an average Forward P/E of 25.73, so one might conclude that Chewy is trading at a premium comparatively.
We can also see that CHWY currently has a PEG ratio of 3.77. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.4 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 64, positioning it in the top 26% 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.
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Chewy (CHWY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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