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Chewy (CHWY) closed the most recent trading day at $37.58, moving -1.26% from the previous trading session. This move lagged the S&P 500's daily gain of 0.24%. Meanwhile, the Dow experienced a rise of 0.16%, and the technology-dominated Nasdaq saw an increase of 0.08%.
Shares of the online pet store witnessed a gain of 2.37% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 5.98% and keeping pace with the S&P 500.
The investment community will be paying close attention to the earnings performance of Chewy in its upcoming release. In that report, analysts expect Chewy to post earnings of $0.20 per share. This would mark year-over-year growth of 11.11%. At the same time, our most recent consensus estimate is projecting a revenue of $3.2 billion, reflecting a 13.11% rise from the equivalent quarter last year.
Investors should also pay attention to any latest changes in analyst estimates for Chewy. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 remained steady. As of now, Chewy holds a Zacks Rank of #3 (Hold).
In terms of valuation, Chewy is currently trading at a Forward P/E ratio of 30.69. This indicates a premium in contrast to its industry's Forward P/E of 22.2.
Also, we should mention that CHWY has a PEG ratio of 0.82. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 1.15.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.