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Chewy (CHWY) Laps the Stock Market: Here's Why

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Chewy (CHWY - Free Report) closed the most recent trading day at $16.60, moving +0.18% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.03%. Meanwhile, the Dow experienced a rise of 0.41%, and the technology-dominated Nasdaq saw an increase of 0.12%.

Coming into today, shares of the online pet store had lost 1.6% in the past month. In that same time, the Consumer Staples sector lost 4.27%, while the S&P 500 lost 0.9%.

The upcoming earnings release of Chewy will be of great interest to investors. The company's upcoming EPS is projected at $0.21, signifying a 5% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $2.87 billion, showing a 2.92% escalation compared to the year-ago quarter.

CHWY's full-year Zacks Consensus Estimates are calling for earnings of $0.83 per share and revenue of $11.74 billion. These results would represent year-over-year changes of +20.29% and +5.55%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for Chewy. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, there's been a 31.34% fall in the Zacks Consensus EPS estimate. Right now, Chewy possesses a Zacks Rank of #3 (Hold).

Investors should also note Chewy's current valuation metrics, including its Forward P/E ratio of 19.86. For comparison, its industry has an average Forward P/E of 18.22, which means Chewy is trading at a premium to the group.

We can additionally observe that CHWY currently boasts a PEG ratio of 0.79. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Consumer Products - Staples industry stood at 1.95 at the close of the market yesterday.

The Consumer Products - Staples industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 59, positioning it in the top 24% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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