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Chewy (CHWY) Dips More Than Broader Markets: What You Should Know

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Chewy (CHWY - Free Report) closed at $27.49 in the latest trading session, marking a -0.54% move from the prior day. This change lagged the S&P 500's daily loss of 0.02%. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, lost 0.2%.

Heading into today, shares of the online pet store had lost 21.41% over the past month, lagging the Consumer Staples sector's loss of 2.56% and the S&P 500's loss of 3.25% in that time.

Wall Street will be looking for positivity from Chewy as it approaches its next earnings report date. This is expected to be August 30, 2023. In that report, analysts expect Chewy to post earnings of $0.11 per share. This would mark year-over-year growth of 120%. Our most recent consensus estimate is calling for quarterly revenue of $2.76 billion, up 13.67% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.56 per share and revenue of $11.32 billion, which would represent changes of +5.66% and +12.06%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Chewy. Recent revisions tend to reflect the latest near-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. 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.

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. Within the past 30 days, our consensus EPS projection has moved 175% higher. Chewy is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Chewy is holding a Forward P/E ratio of 49.53. For comparison, its industry has an average Forward P/E of 20.95, which means Chewy 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 191, which puts it in the bottom 25% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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