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

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Chewy (CHWY - Free Report) closed at $86.35 in the latest trading session, marking a -0.45% move from the prior day. This change lagged the S&P 500's 0.24% gain on the day.

Heading into today, shares of the online pet store had gained 7.95% over the past month, outpacing the Consumer Staples sector's of 0% and the S&P 500's gain of 4.09% in that time.

Wall Street will be looking for positivity from CHWY as it approaches its next earnings report date. On that day, CHWY is projected to report earnings of -$0.01 per share, which would represent year-over-year growth of 87.5%. Meanwhile, our latest consensus estimate is calling for revenue of $2.17 billion, up 27.36% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.12 per share and revenue of $8.99 billion. These totals would mark changes of +33.33% and +25.76%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for CHWY. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. The Zacks Consensus EPS estimate has moved 14.63% higher within the past month. CHWY is currently a Zacks Rank #2 (Buy).

Looking at its valuation, CHWY is holding a Forward P/E ratio of 738.21. For comparison, its industry has an average Forward P/E of 17.15, which means CHWY is trading at a premium to the group.

We can also see that CHWY currently has a PEG ratio of 36.91. 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. The Consumer Products - Staples industry currently had an average PEG ratio of 2.56 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 107, which puts it in the top 43% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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