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Chewy (CHWY) Advances But Underperforms Market: Key Facts

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The latest trading session saw Chewy (CHWY - Free Report) ending at $27.27, denoting a +0.63% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.97%. At the same time, the Dow added 0.58%, and the tech-heavy Nasdaq gained 1.39%.

The online pet store's stock has climbed by 6.23% in the past month, exceeding the Retail-Wholesale sector's loss of 2.12% and the S&P 500's loss of 1.85%.

Investors will be eagerly watching for the performance of Chewy in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 28, 2024. 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. Alongside, our most recent consensus estimate is anticipating revenue of $2.86 billion, indicating a 2.86% upward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.96 per share and a revenue of $11.74 billion, indicating changes of +39.13% and +5.54%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Chewy. These revisions help to show the ever-changing nature of 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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 remained steady. Chewy is holding a Zacks Rank of #1 (Strong Buy) right now.

Looking at its valuation, Chewy is holding a Forward P/E ratio of 28.1. This expresses a premium compared to the average Forward P/E of 21.05 of its industry.

It is also worth noting that CHWY currently has a PEG ratio of 0.95. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 1.1.

The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 70, placing it within the top 28% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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