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Chewy (CHWY) Ascends But Remains Behind Market: Some Facts to Note

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The most recent trading session ended with Chewy (CHWY - Free Report) standing at $17.46, reflecting a +0.11% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 0.58% for the day. Elsewhere, the Dow gained 0.91%, while the tech-heavy Nasdaq added 0.3%.

Shares of the online pet store have depreciated by 8.16% over the course of the past month, underperforming the Consumer Staples sector's gain of 0.32% and the S&P 500's gain of 4.61%.

Market participants will be closely following the financial results of Chewy in its upcoming release. The company is predicted to post an EPS of $0.10, indicating a 37.5% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $2.81 billion, reflecting a 3.69% rise from the equivalent quarter last year.

Any recent changes to analyst estimates for Chewy should also be noted by investors. 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.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.69% increase. Chewy currently has a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Chewy is currently trading at a Forward P/E ratio of 24.66. Its industry sports an average Forward P/E of 17.33, so one might conclude that Chewy is trading at a premium comparatively.

We can additionally observe that CHWY currently boasts a PEG ratio of 1.08. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Consumer Products - Staples industry stood at 1.78 at the close of the market yesterday.

The Consumer Products - Staples industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 104, putting it in the top 42% of all 250+ industries.

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.

Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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