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Chewy (CHWY) Stock Sinks As Market Gains: Here's Why

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Chewy (CHWY - Free Report) ended the recent trading session at $25.12, demonstrating a -1.37% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 1.01% for the day. Elsewhere, the Dow gained 0.83%, while the tech-heavy Nasdaq added 1.22%.

Heading into today, shares of the online pet store had gained 5.12% over the past month, outpacing the Retail-Wholesale sector's loss of 2.64% and the S&P 500's loss of 2.86%.

The investment community will be paying close attention to the earnings performance of Chewy in its upcoming release. The company is slated to reveal its earnings 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. Alongside, our most recent consensus estimate is anticipating revenue of $3.26 billion, indicating a 0.27% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.28 per share and a revenue of $12.6 billion, signifying shifts of +23.08% and +6.21%, respectively, from the last year.

Any recent changes to analyst estimates for Chewy should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 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, 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 past month, there's been a 0.14% fall in the Zacks Consensus EPS estimate. At present, Chewy boasts a Zacks Rank of #3 (Hold).

Investors should also note Chewy's current valuation metrics, including its Forward P/E ratio of 16.28. This denotes a premium relative to the industry average Forward P/E of 15.52.

We can also see that CHWY currently has a PEG ratio of 0.89. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Commerce was holding an average PEG ratio of 0.89 at yesterday's closing price.

The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 163, this industry ranks in the bottom 34% of all industries, numbering over 250.

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.

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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