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Chewy (CHWY) Falls More Steeply Than Broader Market: What Investors Need to Know

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In the latest close session, Chewy (CHWY - Free Report) was down 1.95% at $25.64. This change lagged the S&P 500's daily loss of 0.21%. Elsewhere, the Dow saw a downswing of 0.07%, while the tech-heavy Nasdaq appreciated by 0.01%.

Coming into today, shares of the online pet store had lost 4.53% in the past month. In that same time, the Retail-Wholesale sector lost 2.42%, while the S&P 500 lost 2.26%.

The upcoming earnings release of Chewy will be of great interest to investors. The company's earnings report is expected on March 25, 2026. The company's earnings per share (EPS) are projected to be $0.28, reflecting no change from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $3.26 billion, showing a 0.27% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.28 per share and revenue of $12.6 billion, which would represent changes of +23.08% and +6.21%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Chewy. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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. The Zacks Consensus EPS estimate has moved 0.14% higher within the past month. Chewy is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Chewy's current valuation metrics, including its Forward P/E ratio of 16.7. Its industry sports an average Forward P/E of 16.37, so one might conclude that Chewy is trading at a premium comparatively.

Also, we should mention that CHWY has a PEG ratio of 0.91. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 0.9.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 166, putting it in the bottom 33% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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