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Chewy (CHWY) Stock Drops Despite Market Gains: Important Facts to Note
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Chewy (CHWY - Free Report) closed at $33.07 in the latest trading session, marking a -2.13% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.37%. Elsewhere, the Dow gained 0.48%, while the tech-heavy Nasdaq added 0.65%.
Prior to today's trading, shares of the online pet store had lost 10.21% lagged the Retail-Wholesale sector's gain of 1.74% and the S&P 500's gain of 0.95%.
Market participants will be closely following the financial results of Chewy in its upcoming release. The company is predicted to post an EPS of $0.31, indicating a 55% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.09 billion, up 7.49% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.27 per share and a revenue of $12.59 billion, indicating changes of +22.12% and +10.04%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Chewy. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.43% increase. Chewy is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Chewy is currently trading at a Forward P/E ratio of 26.56. For comparison, its industry has an average Forward P/E of 21.97, which means Chewy is trading at a premium to the group.
Also, we should mention that CHWY has a PEG ratio of 3.42. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Commerce was holding an average PEG ratio of 1.47 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 139, finds itself in the bottom 44% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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Chewy (CHWY) Stock Drops Despite Market Gains: Important Facts to Note
Chewy (CHWY - Free Report) closed at $33.07 in the latest trading session, marking a -2.13% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.37%. Elsewhere, the Dow gained 0.48%, while the tech-heavy Nasdaq added 0.65%.
Prior to today's trading, shares of the online pet store had lost 10.21% lagged the Retail-Wholesale sector's gain of 1.74% and the S&P 500's gain of 0.95%.
Market participants will be closely following the financial results of Chewy in its upcoming release. The company is predicted to post an EPS of $0.31, indicating a 55% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.09 billion, up 7.49% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.27 per share and a revenue of $12.59 billion, indicating changes of +22.12% and +10.04%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Chewy. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.43% increase. Chewy is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Chewy is currently trading at a Forward P/E ratio of 26.56. For comparison, its industry has an average Forward P/E of 21.97, which means Chewy is trading at a premium to the group.
Also, we should mention that CHWY has a PEG ratio of 3.42. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Commerce was holding an average PEG ratio of 1.47 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 139, finds itself in the bottom 44% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.