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Chewy (CHWY) Stock Moves -0.66%: What You Should Know

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Chewy (CHWY - Free Report) closed at $76.98 in the latest trading session, marking a -0.66% move from the prior day. This change was narrower than the S&P 500's 0.75% loss on the day.

Prior to today's trading, shares of the online pet store had lost 0.23% over the past month. This has was narrower than the Consumer Staples sector's loss of 2.22% and lagged the S&P 500's gain of 2.74% 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 -$0.02, up 75% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.17 billion, up 27.48% from the year-ago period.

CHWY's full-year Zacks Consensus Estimates are calling for earnings of $0.10 per share and revenue of $9 billion. These results would represent year-over-year changes of +11.11% and +25.91%, respectively.

Investors should also note any recent changes to analyst estimates for CHWY. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. Within the past 30 days, our consensus EPS projection remained stagnant. CHWY is holding a Zacks Rank of #2 (Buy) right now.

In terms of valuation, CHWY is currently trading at a Forward P/E ratio of 756. Its industry sports an average Forward P/E of 16.99, so we one might conclude that CHWY is trading at a premium comparatively.

Also, we should mention that CHWY has a PEG ratio of 37.8. 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. CHWY's industry had an average PEG ratio of 2.48 as of yesterday's close.

The Consumer Products - Staples industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 119, which puts it in the top 47% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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