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Chefs' Warehouse (CHEF) Gains But Lags Market: What You Should Know

·3 min read

Chefs' Warehouse (CHEF) closed at $33.64 in the latest trading session, marking a +1.29% move from the prior day. This change lagged the S&P 500's 1.83% gain on the day. Meanwhile, the Dow gained 1.4%, and the Nasdaq, a tech-heavy index, added 0.09%.

Coming into today, shares of the distributor of specialty food products had gained 2.09% in the past month. In that same time, the Consumer Staples sector lost 3.95%, while the S&P 500 lost 5.51%.

Wall Street will be looking for positivity from Chefs' Warehouse as it approaches its next earnings report date. The company is expected to report EPS of $0.26, up 116.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $593.44 million, up 22.53% from the year-ago period.

CHEF's full-year Zacks Consensus Estimates are calling for earnings of $1.36 per share and revenue of $2.46 billion. These results would represent year-over-year changes of +2820% and +40.73%, respectively.

Investors might also notice recent changes to analyst estimates for Chefs' Warehouse. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Chefs' Warehouse is holding a Zacks Rank of #1 (Strong Buy) right now.

Valuation is also important, so investors should note that Chefs' Warehouse has a Forward P/E ratio of 24.51 right now. This valuation marks a premium compared to its industry's average Forward P/E of 17.8.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 90, which puts 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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