In the latest trading session, Chegg (CHGG) closed at $82.85, marking a +1.81% move from the previous day. This move outpaced the S&P 500's daily gain of 1.64%. At the same time, the Dow added 0.88%, and the tech-heavy Nasdaq gained 2.56%.
Coming into today, shares of the provider of online textbook rental services had gained 24.19% in the past month. In that same time, the Computer and Technology sector gained 3.41%, while the S&P 500 gained 2.44%.
Wall Street will be looking for positivity from CHGG as it approaches its next earnings report date. This is expected to be October 26, 2020. On that day, CHGG is projected to report earnings of $0.12 per share, which would represent a year-over-year decline of 33.33%. Our most recent consensus estimate is calling for quarterly revenue of $143.90 million, up 52.84% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.27 per share and revenue of $612.94 million. These totals would mark changes of +39.56% and +49.16%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for CHGG. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. CHGG is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, CHGG currently has a Forward P/E ratio of 64.14. This represents a discount compared to its industry's average Forward P/E of 84.56.
Investors should also note that CHGG has a PEG ratio of 2.14 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. CHGG's industry had an average PEG ratio of 6.4 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 169, putting it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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