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Chico's FAS (CHS) Gains As Market Dips: What You Should Know

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Chico's FAS closed the most recent trading day at $4.76, moving +1.71% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.22%. Meanwhile, the Dow lost 0.19%, and the Nasdaq, a tech-heavy index, lost 0.54%.

Heading into today, shares of the clothing chain had lost 7.33% over the past month, outpacing the Retail-Wholesale sector's loss of 9.72% and lagging the S&P 500's loss of 6.58% in that time.

Wall Street will be looking for positivity from Chico's FAS as it approaches its next earnings report date. The company is expected to report EPS of $0.05, up 113.89% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $498 million, up 28.95% from the year-ago period.

CHS's full-year Zacks Consensus Estimates are calling for earnings of $0.37 per share and revenue of $1.82 billion. These results would represent year-over-year changes of +111.9% and +37.2%, respectively.

Any recent changes to analyst estimates for Chico's FAS should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 remained stagnant within the past month. Chico's FAS is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Chico's FAS has a Forward P/E ratio of 12.82 right now. Its industry sports an average Forward P/E of 12.27, so we one might conclude that Chico's FAS is trading at a premium comparatively.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 37% 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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