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Chefs' Warehouse (CHEF) Stock Sinks As Market Gains: What You Should Know

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Chefs' Warehouse (CHEF - Free Report) closed the most recent trading day at $32.83, moving -1.53% from the previous trading session. This move lagged the S&P 500's daily gain of 0.3%. Meanwhile, the Dow gained 0.46%, and the Nasdaq, a tech-heavy index, lost 0.02%.

Coming into today, shares of the distributor of specialty food products had lost 5.95% in the past month. In that same time, the Consumer Staples sector lost 2.26%, while the S&P 500 lost 4.13%.

Wall Street will be looking for positivity from Chefs' Warehouse as it approaches its next earnings report date. On that day, Chefs' Warehouse is projected to report earnings of $0.26 per share, which would represent year-over-year growth of 116.67%. Meanwhile, our latest consensus estimate is calling for revenue of $593.44 million, up 22.53% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.36 per share and revenue of $2.46 billion, which would represent changes of +2820% and +40.73%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Chefs' Warehouse. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Chefs' Warehouse currently has a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Chefs' Warehouse is currently trading at a Forward P/E ratio of 24.6. For comparison, its industry has an average Forward P/E of 18.96, which means Chefs' Warehouse is trading at a premium to the group.

The Food - Miscellaneous industry is part of the Consumer Staples 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 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 CHEF in the coming trading sessions, be sure to utilize Zacks.com.


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