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Chewy (CHWY) Outpaces Stock Market Gains: What You Should Know

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Chewy (CHWY - Free Report) closed the most recent trading day at $46.73, moving +1.68% from the previous trading session. This change outpaced the S&P 500's 0.74% gain on the day. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 1.67%.

Coming into today, shares of the online pet store had lost 7.04% in the past month. In that same time, the Consumer Staples sector gained 5.63%, while the S&P 500 gained 5.51%.

Wall Street will be looking for positivity from CHWY as it approaches its next earnings report date. In that report, analysts expect CHWY to post earnings of -$0.15 per share. This would mark a year-over-year decline of 50%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.64 billion, up 42.09% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.45 per share and revenue of $6.65 billion, which would represent changes of -55.17% and +37.26%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for CHWY. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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 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. Within the past 30 days, our consensus EPS projection remained stagnant. CHWY currently has a Zacks Rank of #3 (Hold).

The Consumer Products - Staples industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 60, which puts it in the top 24% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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