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Chewy (CHWY) Stock Declines While Market Improves: Some Information for Investors
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In the latest close session, Chewy (CHWY - Free Report) was down 1.74% at $21.52. This change lagged the S&P 500's daily gain of 0.6%. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq gained 1.18%.
Heading into today, shares of the online pet store had gained 17.68% over the past month, outpacing the Retail-Wholesale sector's gain of 2.94% and the S&P 500's loss of 0.79%.
Investors will be eagerly watching for the performance of Chewy in its upcoming earnings disclosure. In that report, analysts expect Chewy to post earnings of $0.38 per share. This would mark year-over-year growth of 18.75%. In the meantime, our current consensus estimate forecasts the revenue to be $3.35 billion, indicating a 7.42% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.53 per share and revenue of $13.52 billion, indicating changes of +20.47% and +7.32%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Chewy. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.65% decrease. Chewy presently features a Zacks Rank of #4 (Sell).
Looking at valuation, Chewy is presently trading at a Forward P/E ratio of 14.32. For comparison, its industry has an average Forward P/E of 14.71, which means Chewy is trading at a discount to the group.
We can additionally observe that CHWY currently boasts a PEG ratio of 0.45. 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 industry currently had an average PEG ratio of 1.21 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 187, finds itself in the bottom 24% echelons of all 250+ industries.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Chewy (CHWY) Stock Declines While Market Improves: Some Information for Investors
In the latest close session, Chewy (CHWY - Free Report) was down 1.74% at $21.52. This change lagged the S&P 500's daily gain of 0.6%. At the same time, the Dow added 0.03%, and the tech-heavy Nasdaq gained 1.18%.
Heading into today, shares of the online pet store had gained 17.68% over the past month, outpacing the Retail-Wholesale sector's gain of 2.94% and the S&P 500's loss of 0.79%.
Investors will be eagerly watching for the performance of Chewy in its upcoming earnings disclosure. In that report, analysts expect Chewy to post earnings of $0.38 per share. This would mark year-over-year growth of 18.75%. In the meantime, our current consensus estimate forecasts the revenue to be $3.35 billion, indicating a 7.42% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.53 per share and revenue of $13.52 billion, indicating changes of +20.47% and +7.32%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Chewy. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.65% decrease. Chewy presently features a Zacks Rank of #4 (Sell).
Looking at valuation, Chewy is presently trading at a Forward P/E ratio of 14.32. For comparison, its industry has an average Forward P/E of 14.71, which means Chewy is trading at a discount to the group.
We can additionally observe that CHWY currently boasts a PEG ratio of 0.45. 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 industry currently had an average PEG ratio of 1.21 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 187, finds itself in the bottom 24% echelons of all 250+ industries.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.