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Chewy (CHWY) Rises As Market Takes a Dip: Key Facts

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Chewy (CHWY - Free Report) ended the recent trading session at $36.73, demonstrating a +2.16% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.37%. Meanwhile, the Dow experienced a drop of 0.74%, and the technology-dominated Nasdaq saw a decrease of 0.03%.

The online pet store's stock has dropped by 12.27% in the past month, falling short of the Retail-Wholesale sector's gain of 2.03% and the S&P 500's gain of 2.68%.

Analysts and investors alike will be keeping a close eye on the performance of Chewy in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.33, indicating a 37.5% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $3.08 billion, indicating a 7.83% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.28 per share and a revenue of $12.48 billion, indicating changes of +23.08% and +5.21%, respectively, from the former year.

It is also important to note the 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 business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Chewy is holding a Zacks Rank of #3 (Hold) right now.

With respect to valuation, Chewy is currently being traded at a Forward P/E ratio of 28.13. This indicates a premium in contrast to its industry's Forward P/E of 22.16.

Also, we should mention that CHWY has a PEG ratio of 3.03. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Commerce industry had an average PEG ratio of 1.62 as trading concluded yesterday.

The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 151, positioning it in the bottom 39% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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