Chewy (CHWY) ended the recent trading session at $40.00, demonstrating a -2.49% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.07%. Meanwhile, the Dow experienced a drop of 0.37%, and the technology-dominated Nasdaq saw an increase of 0.03%.
Heading into today, shares of the online pet store had lost 11.8% over the past month, lagging the Retail-Wholesale sector's gain of 1.87% and the S&P 500's gain of 3.94%.
The upcoming earnings release of Chewy will be of great interest to investors. The company is predicted to post an EPS of $0.33, indicating a 37.5% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $3.08 billion, indicating a 7.83% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.28 per share and revenue of $12.48 billion, indicating changes of +23.08% and +5.21%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Chewy. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 12.9% upward. 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 32.1. This indicates a premium in contrast to its industry's Forward P/E of 25.
Also, we should mention that CHWY has a PEG ratio of 3.46. 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. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 1.44.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 62, putting it in the top 26% of all 250+ industries.
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.
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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