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Chewy (CHWY) Advances But Underperforms Market: Key Facts
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In the latest close session, Chewy (CHWY - Free Report) was up +1.27% at $23.15. The stock's change was less than the S&P 500's daily gain of 1.31%. Elsewhere, the Dow gained 0.49%, while the tech-heavy Nasdaq added 1.6%.
The online pet store's stock has climbed by 15.98% in the past month, exceeding the Retail-Wholesale sector's gain of 6.69% and the S&P 500's loss of 3.66%.
The investment community will be paying close attention to the earnings performance of Chewy in its upcoming release. On that day, Chewy is projected to report earnings of $0.38 per share, which would represent year-over-year growth of 18.75%. Simultaneously, our latest consensus estimate expects the revenue to be $3.35 billion, showing a 7.42% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $1.53 per share and a revenue of $13.52 billion, demonstrating changes of +20.47% and +7.32%, respectively, from the preceding year.
Any recent changes to analyst estimates for Chewy should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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, the Zacks Consensus EPS estimate remained stagnant. Chewy currently has a Zacks Rank of #4 (Sell).
From a valuation perspective, Chewy is currently exchanging hands at a Forward P/E ratio of 14.95. This indicates a discount in contrast to its industry's Forward P/E of 15.67.
Also, we should mention that CHWY has a PEG ratio of 0.47. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.16 based on yesterday's closing prices.
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 35% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Image: Bigstock
Chewy (CHWY) Advances But Underperforms Market: Key Facts
In the latest close session, Chewy (CHWY - Free Report) was up +1.27% at $23.15. The stock's change was less than the S&P 500's daily gain of 1.31%. Elsewhere, the Dow gained 0.49%, while the tech-heavy Nasdaq added 1.6%.
The online pet store's stock has climbed by 15.98% in the past month, exceeding the Retail-Wholesale sector's gain of 6.69% and the S&P 500's loss of 3.66%.
The investment community will be paying close attention to the earnings performance of Chewy in its upcoming release. On that day, Chewy is projected to report earnings of $0.38 per share, which would represent year-over-year growth of 18.75%. Simultaneously, our latest consensus estimate expects the revenue to be $3.35 billion, showing a 7.42% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $1.53 per share and a revenue of $13.52 billion, demonstrating changes of +20.47% and +7.32%, respectively, from the preceding year.
Any recent changes to analyst estimates for Chewy should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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, the Zacks Consensus EPS estimate remained stagnant. Chewy currently has a Zacks Rank of #4 (Sell).
From a valuation perspective, Chewy is currently exchanging hands at a Forward P/E ratio of 14.95. This indicates a discount in contrast to its industry's Forward P/E of 15.67.
Also, we should mention that CHWY has a PEG ratio of 0.47. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.16 based on yesterday's closing prices.
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 35% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.