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Chewy (CHWY) Suffers a Larger Drop Than the General Market: Key Insights

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Chewy (CHWY - Free Report) closed at $39.44 in the latest trading session, marking a -3.71% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.69%. Elsewhere, the Dow lost 0.55%, while the tech-heavy Nasdaq lost 0.82%.

The online pet store's shares have seen an increase of 14.32% over the last month, surpassing the Retail-Wholesale sector's gain of 4.84% and the S&P 500's gain of 3.79%.

Investors will be eagerly watching for the performance of Chewy in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on September 10, 2025. The company is expected to report EPS of $0.33, up 37.5% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $3.08 billion, indicating a 7.83% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $1.28 per share and a revenue of $12.48 billion, demonstrating changes of +23.08% and +5.21%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Chewy. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Chewy boasts a Zacks Rank of #3 (Hold).

In terms of valuation, Chewy is currently trading at a Forward P/E ratio of 32.05. This represents a premium compared to its industry average Forward P/E of 20.51.

It's also important to note that CHWY currently trades at a PEG ratio of 3.45. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. CHWY's industry had an average PEG ratio of 1.54 as of yesterday's close.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 41% 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.

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


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