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Chewy (CHWY) Stock Falls Amid Market Uptick: What Investors Need to Know

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In the latest trading session, Chewy (CHWY - Free Report) closed at $15.77, marking a -0.44% move from the previous day. This change lagged the S&P 500's daily gain of 0.32%. Meanwhile, the Dow gained 0.38%, and the Nasdaq, a tech-heavy index, added 0.35%.

The the stock of online pet store has fallen by 0.44% in the past month, leading the Consumer Staples sector's loss of 0.5% and the S&P 500's loss of 2%.

The upcoming earnings release of Chewy will be of great interest to investors. In that report, analysts expect Chewy to post earnings of $0.21 per share. This would mark year-over-year growth of 5%. Our most recent consensus estimate is calling for quarterly revenue of $2.87 billion, up 2.92% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $0.83 per share and a revenue of $11.74 billion, demonstrating changes of +20.29% and +5.55%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Chewy. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Chewy presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Chewy is presently being traded at a Forward P/E ratio of 18.99. This indicates a premium in contrast to its industry's Forward P/E of 18.67.

We can additionally observe that CHWY currently boasts a PEG ratio of 0.76. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Consumer Products - Staples industry held an average PEG ratio of 1.97.

The Consumer Products - Staples industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 25% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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