In the latest trading session, Chewy (CHWY) closed at $21.63, marking a +1.64% move from the previous day. This move outpaced the S&P 500's daily loss of 0.07%. On the other hand, the Dow registered a gain of 0.32%, and the technology-centric Nasdaq decreased by 0.51%.
The online pet store's shares have seen a decrease of 22.67% over the last month, not keeping up with the Retail-Wholesale sector's gain of 0.34% and the S&P 500's gain of 5.58%.
Analysts and investors alike will be keeping a close eye on the performance of Chewy in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.43, reflecting a 22.86% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $3.36 billion, showing a 7.91% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.63 per share and a revenue of $13.68 billion, representing changes of +28.35% and +8.59%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Chewy. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Chewy is holding a Zacks Rank of #2 (Buy) right now.
From a valuation perspective, Chewy is currently exchanging hands at a Forward P/E ratio of 13.09. Its industry sports an average Forward P/E of 16.34, so one might conclude that Chewy is trading at a discount comparatively.
Meanwhile, CHWY's PEG ratio is currently 0.5. 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. The Internet - Commerce industry currently had an average PEG ratio of 0.89 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 188, which puts it in the bottom 23% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>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 Report
This article originally published on Zacks Investment Research (zacks.com).