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Chewy (CHWY) Gains As Market Dips: What You Should Know

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Chewy (CHWY - Free Report) closed the most recent trading day at $109.75, moving +1.85% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.11%. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, added 0.14%.

Prior to today's trading, shares of the online pet store had gained 14.28% over the past month. This has outpaced the Consumer Staples sector's loss of 0.82% and the S&P 500's gain of 2.46% in that time.

Investors will be hoping for strength from CHWY as it approaches its next earnings release. On that day, CHWY is projected to report earnings of -$0.10 per share, which would represent a year-over-year decline of 150%. Meanwhile, our latest consensus estimate is calling for revenue of $1.96 billion, up 44.9% from the prior-year quarter.

It is also important to note the 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 3.77% lower. CHWY currently has a Zacks Rank of #4 (Sell).

The Consumer Products - Staples industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 211, putting it in the bottom 18% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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