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Here's Why Chewy (CHWY) Fell More Than Broader Market
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Chewy (CHWY - Free Report) closed the most recent trading day at $20.46, moving -4.93% from the previous trading session. This move lagged the S&P 500's daily loss of 1.21%. At the same time, the Dow lost 0.97%, and the tech-heavy Nasdaq lost 2.15%.
Shares of the online pet store have appreciated by 13.2% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 2.27%, and the S&P 500's gain of 0.42%.
The investment community will be paying close attention to the earnings performance of Chewy in its upcoming release. The company is expected to report EPS of $0.36, up 9.09% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $3.32 billion, indicating a 6.83% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $1.53 per share and a revenue of $13.49 billion, demonstrating changes of +20.47% and +7.06%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Chewy. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.78% downward. Chewy currently has a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, Chewy is holding a Forward P/E ratio of 14.09. This expresses a discount compared to the average Forward P/E of 16.93 of its industry.
We can additionally observe that CHWY currently boasts a PEG ratio of 0.57. 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. CHWY's industry had an average PEG ratio of 1.11 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 158, positioning it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CHWY in the coming trading sessions, be sure to utilize Zacks.com.
View the Zacks #1 Rank List
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Here's Why Chewy (CHWY) Fell More Than Broader Market
Chewy (CHWY - Free Report) closed the most recent trading day at $20.46, moving -4.93% from the previous trading session. This move lagged the S&P 500's daily loss of 1.21%. At the same time, the Dow lost 0.97%, and the tech-heavy Nasdaq lost 2.15%.
Shares of the online pet store have appreciated by 13.2% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 2.27%, and the S&P 500's gain of 0.42%.
The investment community will be paying close attention to the earnings performance of Chewy in its upcoming release. The company is expected to report EPS of $0.36, up 9.09% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $3.32 billion, indicating a 6.83% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $1.53 per share and a revenue of $13.49 billion, demonstrating changes of +20.47% and +7.06%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Chewy. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.78% downward. Chewy currently has a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, Chewy is holding a Forward P/E ratio of 14.09. This expresses a discount compared to the average Forward P/E of 16.93 of its industry.
We can additionally observe that CHWY currently boasts a PEG ratio of 0.57. 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. CHWY's industry had an average PEG ratio of 1.11 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 158, positioning it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CHWY in the coming trading sessions, be sure to utilize Zacks.com.