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

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Chewy (CHWY - Free Report) closed the most recent trading day at $71.51, moving -3.92% from the previous trading session. This move lagged the S&P 500's daily gain of 0.82%.

Prior to today's trading, shares of the online pet store had lost 9.07% over the past month. This has lagged the Consumer Staples sector's gain of 2.09% and the S&P 500's gain of 2.31% in that time.

CHWY will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.03, up 125% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.12 billion, up 31.03% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.18 per share and revenue of $8.95 billion. These totals would mark changes of +100% and +25.24%, respectively, from last year.

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

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.31% higher within the past month. CHWY currently has a Zacks Rank of #2 (Buy).

Digging into valuation, CHWY currently has a Forward P/E ratio of 416.81. This represents a premium compared to its industry's average Forward P/E of 24.25.

Investors should also note that CHWY has a PEG ratio of 20.84 right now. 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. CHWY's industry had an average PEG ratio of 2.51 as of yesterday's close.

The Consumer Products - Staples industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 165, putting it in the bottom 36% 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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