In the latest trading session, Chewy (CHWY) closed at $22.97, marking a -2.96% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.84%. Meanwhile, the Dow experienced a rise of 0.03%, and the technology-dominated Nasdaq saw an increase of 1.71%.
The online pet store's stock has dropped by 8.96% in the past month, falling short of the Retail-Wholesale sector's gain of 11.54% and the S&P 500's gain of 10.96%.
The upcoming earnings release of Chewy will be of great interest to investors. It is anticipated that the company will report an EPS of $0.43, marking a 22.86% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $3.36 billion, reflecting a 7.91% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.63 per share and a revenue of $13.68 billion, demonstrating changes of +28.35% and +8.59%, respectively, from the preceding 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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 remained steady. At present, Chewy boasts a Zacks Rank of #2 (Buy).
In terms of valuation, Chewy is presently being traded at a Forward P/E ratio of 14.56. This expresses a discount compared to the average Forward P/E of 17.12 of its industry.
It is also worth noting that CHWY currently has a PEG ratio of 0.56. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CHWY's industry had an average PEG ratio of 0.95 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 181, positioning it in the bottom 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).