In the latest trading session, Chewy (CHWY) closed at $21.30, marking a -1.09% move from the previous day. This change lagged the S&P 500's 0.58% gain on the day. Elsewhere, the Dow gained 0.69%, while the tech-heavy Nasdaq added 1.05%.
The online pet store's shares have seen an increase of 9.51% over the last month, surpassing the Retail-Wholesale sector's gain of 4.75% and the S&P 500's gain of 0.97%.
The investment community will be closely monitoring the performance of Chewy in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.38, reflecting a 18.75% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $3.35 billion, up 7.42% from the prior-year quarter.
CHWY's full-year Zacks Consensus Estimates are calling for earnings of $1.53 per share and revenue of $13.52 billion. These results would represent year-over-year changes of +20.47% and +7.32%, respectively.
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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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 past month, there's been a 0.65% fall in the Zacks Consensus EPS estimate. As of now, Chewy holds a Zacks Rank of #4 (Sell).
In terms of valuation, Chewy is presently being traded at a Forward P/E ratio of 14.08. This signifies a discount in comparison to the average Forward P/E of 15.64 for its industry.
It's also important to note that CHWY currently trades at a PEG ratio of 0.45. 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 1.26.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 162, positioning it in the bottom 35% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).