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Chegg (CHGG) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Chegg (CHGG - Free Report) closed at $76.58, marking a -0.47% move from the previous day. This change lagged the S&P 500's daily gain of 0.17%. Elsewhere, the Dow gained 0.6%, while the tech-heavy Nasdaq lost 0.81%.
Coming into today, shares of the provider of online textbook rental services had gained 10.18% in the past month. In that same time, the Computer and Technology sector gained 7.91%, while the S&P 500 gained 5.15%.
Wall Street will be looking for positivity from CHGG as it approaches its next earnings report date. This is expected to be August 3, 2020. In that report, analysts expect CHGG to post earnings of $0.34 per share. This would mark year-over-year growth of 47.83%. Our most recent consensus estimate is calling for quarterly revenue of $136.76 million, up 45.7% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.20 per share and revenue of $554.05 million. These totals would mark changes of +31.87% and +34.83%, respectively, from last year.
Any recent changes to analyst estimates for CHGG should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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, the Zacks Consensus EPS estimate has moved 0.08% higher. CHGG currently has a Zacks Rank of #3 (Hold).
Investors should also note CHGG's current valuation metrics, including its Forward P/E ratio of 63.89. This represents a discount compared to its industry's average Forward P/E of 78.11.
It is also worth noting that CHGG currently has a PEG ratio of 2.13. 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. The Internet - Software industry currently had an average PEG ratio of 4.19 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow CHGG in the coming trading sessions, be sure to utilize Zacks.com.
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Chegg (CHGG) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Chegg (CHGG - Free Report) closed at $76.58, marking a -0.47% move from the previous day. This change lagged the S&P 500's daily gain of 0.17%. Elsewhere, the Dow gained 0.6%, while the tech-heavy Nasdaq lost 0.81%.
Coming into today, shares of the provider of online textbook rental services had gained 10.18% in the past month. In that same time, the Computer and Technology sector gained 7.91%, while the S&P 500 gained 5.15%.
Wall Street will be looking for positivity from CHGG as it approaches its next earnings report date. This is expected to be August 3, 2020. In that report, analysts expect CHGG to post earnings of $0.34 per share. This would mark year-over-year growth of 47.83%. Our most recent consensus estimate is calling for quarterly revenue of $136.76 million, up 45.7% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.20 per share and revenue of $554.05 million. These totals would mark changes of +31.87% and +34.83%, respectively, from last year.
Any recent changes to analyst estimates for CHGG should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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, the Zacks Consensus EPS estimate has moved 0.08% higher. CHGG currently has a Zacks Rank of #3 (Hold).
Investors should also note CHGG's current valuation metrics, including its Forward P/E ratio of 63.89. This represents a discount compared to its industry's average Forward P/E of 78.11.
It is also worth noting that CHGG currently has a PEG ratio of 2.13. 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. The Internet - Software industry currently had an average PEG ratio of 4.19 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
To follow CHGG in the coming trading sessions, be sure to utilize Zacks.com.