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Chewy (CHWY) Stock Sinks As Market Gains: What You Should Know

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Chewy (CHWY - Free Report) closed at $22.28 in the latest trading session, marking a -1.15% move from the prior day. This move lagged the S&P 500's daily gain of 0.26%. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq added 0.42%.

Prior to today's trading, shares of the online pet store had lost 11.75% lagged the Retail-Wholesale sector's loss of 1.79% and the S&P 500's gain of 6.32%.

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 June 10, 2026. It is anticipated that the company will report an EPS of $0.43, marking a 22.86% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $3.36 billion, showing a 7.84% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.62 per share and revenue of $13.67 billion. These totals would mark changes of +27.56% and +8.5%, respectively, from last year.

Investors should also pay attention to any latest changes in analyst estimates for Chewy. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.7% decrease. Right now, Chewy possesses a Zacks Rank of #3 (Hold).

Investors should also note Chewy's current valuation metrics, including its Forward P/E ratio of 13.91. For comparison, its industry has an average Forward P/E of 16.55, which means Chewy is trading at a discount to the group.

Also, we should mention that CHWY has a PEG ratio of 0.54. 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. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 1.

The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 159, placing it within the bottom 35% of over 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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