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Chewy (CHWY) Rises Yet Lags Behind Market: Some Facts Worth Knowing

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Chewy (CHWY - Free Report) closed the latest trading day at $20.58, indicating a +0.29% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.74%. Meanwhile, the Dow gained 0.58%, and the Nasdaq, a tech-heavy index, added 1.13%.

The investment community will be paying close attention to the earnings performance of Chewy in its upcoming release. The company is slated to reveal its earnings on December 6, 2023. The company's upcoming EPS is projected at $0.09, signifying an 800% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.81 billion, up 10.8% from the year-ago period.

CHWY's full-year Zacks Consensus Estimates are calling for earnings of $0.57 per share and revenue of $11.25 billion. These results would represent year-over-year changes of +7.55% and +11.44%, respectively.

Investors might also notice recent changes to analyst estimates for Chewy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 33.33% higher within the past month. Currently, Chewy is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, Chewy is presently being traded at a Forward P/E ratio of 36.25. This indicates a premium in contrast to its industry's Forward P/E of 18.39.

It is also worth noting that CHWY currently has a PEG ratio of 1.53. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Consumer Products - Staples industry stood at 2.22 at the close of the market yesterday.

The Consumer Products - Staples industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 165, this industry ranks in the bottom 35% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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