Chewy (CHWY) ended the recent trading session at $20.86, demonstrating a +1.96% change from the preceding day’s closing price. The stock’s change was more than the S&P 500’s daily gain of 0.05%. At the same time, the Dow added 0.46%, and the tech-heavy Nasdaq lost 0.64%.
Coming into today, shares of the online pet store had gained 12.79% in the past month. In that same time, the Retail-Wholesale sector lost 0.78%, while the S&P 500 gained 0.61%.
The investment community will be paying close attention to the earnings performance of Chewy in its upcoming release. The company is forecasted to report an EPS of $0.36, showcasing a 9.09% upward movement from the corresponding quarter of the prior year. 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.
CHWY’s full-year Zacks Consensus Estimates are calling for earnings of $1.53 per share and revenue of $13.49 billion. These results would represent year-over-year changes of +20.47% and +7.06%, respectively.
Investors should also take note of any recent adjustments to 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 business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 0.78% lower. Chewy is currently sporting a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Chewy is currently trading at a Forward P/E ratio of 13.39. This indicates a discount in contrast to its industry’s Forward P/E of 16.54.
It is also worth noting that CHWY currently has a PEG ratio of 0.54. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. The Internet – Commerce industry had an average PEG ratio of 1.11 as trading concluded yesterday.
The Internet – Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 157, this industry ranks in the bottom 37% of all industries, numbering over 250.
