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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 $65.90 in the latest trading session, marking a -0.66% move from the prior day. This change lagged the S&P 500's daily gain of 0.37%.

Prior to today's trading, shares of the online pet store had lost 11.72% over the past month. This has lagged the Consumer Staples sector's loss of 1.87% and the S&P 500's gain of 2.13% 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 -$0.04 per share, which would represent year-over-year growth of 50%. Our most recent consensus estimate is calling for quarterly revenue of $2.21 billion, up 24.16% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.08 per share and revenue of $8.95 billion. These totals would mark changes of -11.11% and +25.21%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for CHWY. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant within the past month. CHWY is holding a Zacks Rank of #4 (Sell) right now.

Digging into valuation, CHWY currently has a Forward P/E ratio of 872.9. For comparison, its industry has an average Forward P/E of 22.47, which means CHWY is trading at a premium to the group.

The Consumer Products - Staples industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 211, which puts 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.

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


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