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Chegg (CHGG) Outpaces Stock Market Gains: What You Should Know

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Chegg (CHGG - Free Report) closed the most recent trading day at $97.95, moving +1.48% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.04%. At the same time, the Dow added 0.19%, and the tech-heavy Nasdaq gained 0.28%.

Coming into today, shares of the provider of online textbook rental services had gained 15.65% in the past month. In that same time, the Computer and Technology sector gained 4.2%, while the S&P 500 gained 3.84%.

Wall Street will be looking for positivity from CHGG as it approaches its next earnings report date. This is expected to be February 8, 2021. In that report, analysts expect CHGG to post earnings of $0.52 per share. This would mark year-over-year growth of 48.57%. Our most recent consensus estimate is calling for quarterly revenue of $189.68 million, up 51.14% from the year-ago period.

Any recent changes to analyst estimates for CHGG should also be noted by investors. 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 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. CHGG is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, CHGG is holding a Forward P/E ratio of 56.67. This valuation marks a discount compared to its industry's average Forward P/E of 82.83.

Also, we should mention that CHGG has a PEG ratio of 1.89. 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. Internet - Software stocks are, on average, holding a PEG ratio of 4.26 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 188, putting it in the bottom 27% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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