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Why Chewy (CHWY) Dipped More Than Broader Market Today
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In the latest close session, Chewy (CHWY - Free Report) was down 5.14% at $25.65. The stock fell short of the S&P 500, which registered a loss of 0.41% for the day. Elsewhere, the Dow lost 0.36%, while the tech-heavy Nasdaq lost 0.89%.
Prior to today's trading, shares of the online pet store had gained 1.77% lagged the Retail-Wholesale sector's gain of 13.14% and the S&P 500's gain of 9.71%.
Market participants will be closely following the financial results of Chewy in its upcoming release. The company is expected to report EPS of $0.43, up 22.86% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $3.36 billion, indicating a 7.87% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.63 per share and a revenue of $13.69 billion, indicating changes of +28.35% and +8.61%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Chewy. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 10.64% higher. Chewy is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Chewy is currently trading at a Forward P/E ratio of 16.64. This denotes a discount relative to the industry average Forward P/E of 17.61.
Meanwhile, CHWY's PEG ratio is currently 0.64. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Commerce industry had an average PEG ratio of 0.92 as trading concluded yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 178, putting it in the bottom 28% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Why Chewy (CHWY) Dipped More Than Broader Market Today
In the latest close session, Chewy (CHWY - Free Report) was down 5.14% at $25.65. The stock fell short of the S&P 500, which registered a loss of 0.41% for the day. Elsewhere, the Dow lost 0.36%, while the tech-heavy Nasdaq lost 0.89%.
Prior to today's trading, shares of the online pet store had gained 1.77% lagged the Retail-Wholesale sector's gain of 13.14% and the S&P 500's gain of 9.71%.
Market participants will be closely following the financial results of Chewy in its upcoming release. The company is expected to report EPS of $0.43, up 22.86% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $3.36 billion, indicating a 7.87% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.63 per share and a revenue of $13.69 billion, indicating changes of +28.35% and +8.61%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Chewy. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 10.64% higher. Chewy is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Chewy is currently trading at a Forward P/E ratio of 16.64. This denotes a discount relative to the industry average Forward P/E of 17.61.
Meanwhile, CHWY's PEG ratio is currently 0.64. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Commerce industry had an average PEG ratio of 0.92 as trading concluded yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 178, putting it in the bottom 28% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.