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Chewy (CHWY) Stock Moves -0.36%: What You Should Know

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The most recent trading session ended with Chewy (CHWY - Free Report) standing at $16.80, reflecting a -0.36% shift from the previouse trading day's closing. The stock's performance was ahead of the S&P 500's daily loss of 1.26%. Elsewhere, the Dow lost 0.86%, while the tech-heavy Nasdaq lost 1.54%.

Shares of the online pet store have depreciated by 7.16% over the course of the past month, underperforming the Consumer Staples sector's loss of 4.79% and the S&P 500's loss of 3.67%.

The investment community will be paying close attention to the earnings performance of Chewy in its upcoming release. It is anticipated that the company will report an EPS of $0.09, marking an 800% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $2.81 billion, up 10.8% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.56 per share and a revenue of $11.25 billion, representing changes of +5.66% and +11.44%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Chewy. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering 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 #3 (Hold).

With respect to valuation, Chewy is currently being traded at a Forward P/E ratio of 29.89. This represents a premium compared to its industry's average Forward P/E of 19.11.

It's also important to note that CHWY currently trades at a PEG ratio of 1.15. 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. CHWY's industry had an average PEG ratio of 2.08 as of yesterday's close.

The Consumer Products - Staples industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 169, this industry ranks in the bottom 33% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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