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Chewy (CHWY) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Chewy (CHWY - Free Report) closed at $81.89, marking a -0.96% move from the previous day. This change lagged the S&P 500's 0.09% loss on the day.

Coming into today, shares of the online pet store had gained 2.86% in the past month. In that same time, the Consumer Staples sector gained 1.75%, while the S&P 500 gained 5.45%.

Wall Street will be looking for positivity from CHWY as it approaches its next earnings report date. The company is expected to report EPS of $0.02, up 116.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.12 billion, up 31.03% from the prior-year quarter.

CHWY's full-year Zacks Consensus Estimates are calling for earnings of $0.17 per share and revenue of $8.95 billion. These results would represent year-over-year changes of +88.89% and +25.24%, respectively.

It is also important to note the recent changes to analyst estimates for CHWY. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 333.33% higher within the past month. CHWY is holding a Zacks Rank of #2 (Buy) right now.

Investors should also note CHWY's current valuation metrics, including its Forward P/E ratio of 486.35. This valuation marks a premium compared to its industry's average Forward P/E of 23.95.

It is also worth noting that CHWY currently has a PEG ratio of 24.32. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Consumer Products - Staples stocks are, on average, holding a PEG ratio of 2.65 based on yesterday's closing prices.

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 17% 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.

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


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