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Chegg (CHGG) Stock Sinks As Market Gains: What You Should Know
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Chegg (CHGG - Free Report) closed the most recent trading day at $89.57, moving -1.41% from the previous trading session. This change lagged the S&P 500's daily gain of 0.57%. At the same time, the Dow added 1.44%, and the tech-heavy Nasdaq lost 0.61%.
Coming into today, shares of the provider of online textbook rental services had gained 14.55% in the past month. In that same time, the Computer and Technology sector gained 1.94%, while the S&P 500 gained 0.83%.
CHGG will be looking to display strength as it nears its next earnings release. In that report, analysts expect CHGG to post earnings of $0.52 per share. This would mark year-over-year growth of 48.57%. Meanwhile, our latest consensus estimate is calling for revenue of $189.68 million, up 51.14% from the prior-year quarter.
Any recent changes to analyst estimates for CHGG should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. CHGG is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that CHGG has a Forward P/E ratio of 53.34 right now. This represents a discount compared to its industry's average Forward P/E of 82.95.
Also, we should mention that CHGG has a PEG ratio of 1.78. 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. The Internet - Software was holding an average PEG ratio of 4.21 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 212, putting it in the bottom 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Chegg (CHGG) Stock Sinks As Market Gains: What You Should Know
Chegg (CHGG - Free Report) closed the most recent trading day at $89.57, moving -1.41% from the previous trading session. This change lagged the S&P 500's daily gain of 0.57%. At the same time, the Dow added 1.44%, and the tech-heavy Nasdaq lost 0.61%.
Coming into today, shares of the provider of online textbook rental services had gained 14.55% in the past month. In that same time, the Computer and Technology sector gained 1.94%, while the S&P 500 gained 0.83%.
CHGG will be looking to display strength as it nears its next earnings release. In that report, analysts expect CHGG to post earnings of $0.52 per share. This would mark year-over-year growth of 48.57%. Meanwhile, our latest consensus estimate is calling for revenue of $189.68 million, up 51.14% from the prior-year quarter.
Any recent changes to analyst estimates for CHGG should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. CHGG is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that CHGG has a Forward P/E ratio of 53.34 right now. This represents a discount compared to its industry's average Forward P/E of 82.95.
Also, we should mention that CHGG has a PEG ratio of 1.78. 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. The Internet - Software was holding an average PEG ratio of 4.21 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 212, putting it in the bottom 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.