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Chewy (CHWY) Gains But Lags Market: What You Should Know

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Chewy (CHWY) closed the most recent trading day at $43.31, moving +0.77% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.76%. Meanwhile, the Dow gained 2.43%, and the Nasdaq, a tech-heavy index, added 0.13%.

Heading into today, shares of the online pet store had gained 49.76% over the past month, outpacing the Consumer Staples sector's gain of 3.94% and the S&P 500's gain of 4.44% in that time.

Investors will be hoping for strength from Chewy as it approaches its next earnings release. On that day, Chewy is projected to report earnings of -$0.12 per share, which would represent a year-over-year decline of 200%. Our most recent consensus estimate is calling for quarterly revenue of $2.5 billion, up 15.95% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.35 per share and revenue of $10.47 billion, which would represent changes of -1266.67% and +17.82%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Chewy. These revisions help to show the ever-changing nature of near-term business trends. 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.

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 moved 1.77% higher. Chewy is currently a Zacks Rank #2 (Buy).

The Consumer Products - Staples industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 161, putting it in the bottom 37% of all 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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