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Here's Why Chewy (CHWY) Gained But Lagged the Market Today
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In the latest trading session, Chewy (CHWY - Free Report) closed at $26.53, marking a +0.23% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.55%. Meanwhile, the Dow experienced a rise of 0.62%, and the technology-dominated Nasdaq saw an increase of 0.63%.
Heading into today, shares of the online pet store had gained 13.85% over the past month, outpacing the Retail-Wholesale sector's gain of 1.33% and the S&P 500's gain of 4.28% in that time.
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 $0.22, marking a 46.67% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $2.86 billion, reflecting a 2.86% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.96 per share and a revenue of $11.74 billion, representing changes of +39.13% and +5.54%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Chewy. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 10.66% increase. Chewy presently features a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Chewy is presently being traded at a Forward P/E ratio of 27.45. This denotes a premium relative to the industry's average Forward P/E of 21.71.
Investors should also note that CHWY has a PEG ratio of 0.92 right now. 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 average PEG ratio for the Internet - Commerce industry stood at 1.05 at the close of the market yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 54, placing it within the top 22% of over 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 CHWY in the coming trading sessions, be sure to utilize Zacks.com.
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Here's Why Chewy (CHWY) Gained But Lagged the Market Today
In the latest trading session, Chewy (CHWY - Free Report) closed at $26.53, marking a +0.23% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.55%. Meanwhile, the Dow experienced a rise of 0.62%, and the technology-dominated Nasdaq saw an increase of 0.63%.
Heading into today, shares of the online pet store had gained 13.85% over the past month, outpacing the Retail-Wholesale sector's gain of 1.33% and the S&P 500's gain of 4.28% in that time.
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 $0.22, marking a 46.67% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $2.86 billion, reflecting a 2.86% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.96 per share and a revenue of $11.74 billion, representing changes of +39.13% and +5.54%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Chewy. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 10.66% increase. Chewy presently features a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Chewy is presently being traded at a Forward P/E ratio of 27.45. This denotes a premium relative to the industry's average Forward P/E of 21.71.
Investors should also note that CHWY has a PEG ratio of 0.92 right now. 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 average PEG ratio for the Internet - Commerce industry stood at 1.05 at the close of the market yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 54, placing it within the top 22% of over 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 CHWY in the coming trading sessions, be sure to utilize Zacks.com.