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Chewy (CHWY) Stock Sinks As Market Gains: What You Should Know

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In the latest trading session, Chewy (CHWY - Free Report) closed at $17.98, marking a -1.48% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.12%. At the same time, the Dow added 0.61%, and the tech-heavy Nasdaq gained 1.54%.

Shares of the online pet store have appreciated by 4.11% over the course of the past month, outperforming the Consumer Staples sector's gain of 1.98% and the S&P 500's gain of 2.06%.

The investment community will be closely monitoring the performance of Chewy in its forthcoming earnings report. The company is scheduled to release its earnings on March 20, 2024. On that day, Chewy is projected to report earnings of $0.10 per share, which would represent a year-over-year decline of 37.5%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.81 billion, indicating a 3.69% increase compared to the same quarter of the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Chewy. 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.

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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Chewy presently features a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Chewy is currently trading at a Forward P/E ratio of 25.81. This expresses a premium compared to the average Forward P/E of 18.41 of its industry.

Investors should also note that CHWY has a PEG ratio of 1.13 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Consumer Products - Staples was holding an average PEG ratio of 2.22 at yesterday's closing price.

The Consumer Products - Staples industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 157, finds itself in the bottom 38% echelons 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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