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Chewy (CHWY) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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Chewy (CHWY - Free Report) ended the recent trading session at $26.51, demonstrating a -0.67% swing from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.33%. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, lost 0.56%.

Shares of the online pet store witnessed a loss of 9.09% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 0.22% and the S&P 500's gain of 1.83%.

Market participants will be closely following the financial results of Chewy in its upcoming release. The company is forecasted to report an EPS of $0.23, showcasing a 53.33% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $2.86 billion, indicating a 4.44% growth compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.14 per share and revenue of $11.83 billion, indicating changes of +65.22% and +6.34%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Chewy. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Chewy holds a Zacks Rank of #3 (Hold).

From a valuation perspective, Chewy is currently exchanging hands at a Forward P/E ratio of 23.41. This represents no noticeable deviation compared to its industry's average Forward P/E of 23.41.

Investors should also note that CHWY has a PEG ratio of 0.75 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. CHWY's industry had an average PEG ratio of 1.23 as of yesterday's close.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 27% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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