Chewy (CHWY) Stock Declines While Market Improves: Some Information for Investors

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Chewy (CHWY) ended the recent trading session at $39.48, demonstrating a -0.23% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 3.26%. Meanwhile, the Dow experienced a rise of 2.81%, and the technology-dominated Nasdaq saw an increase of 4.35%.

Coming into today, shares of the online pet store had gained 14.17% in the past month. In that same time, the Retail-Wholesale sector gained 4.56%, while the S&P 500 gained 3.78%.

Analysts and investors alike will be keeping a close eye on the performance of Chewy in its upcoming earnings disclosure. The company's earnings report is set to go public on June 11, 2025. In that report, analysts expect Chewy to post earnings of $0.34 per share. This would mark year-over-year growth of 9.68%. Meanwhile, our latest consensus estimate is calling for revenue of $3.07 billion, up 6.85% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $1.23 per share and a revenue of $12.4 billion, demonstrating changes of +18.27% and +4.52%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Chewy. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. 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 32.15. This indicates a premium in contrast to its industry's Forward P/E of 23.73.

Investors should also note that CHWY has a PEG ratio of 3.4 right now. 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. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 1.43.