Chewy (CHWY) Outpaces Stock Market Gains: What You Should Know
Chewy (CHWY) closed at $86.75 in the latest trading session, marking a +1.6% move from the prior day. This move outpaced the S&P 500's daily gain of 0.82%.
Heading into today, shares of the online pet store had gained 6% over the past month, outpacing the Consumer Staples sector's loss of 0.28% and the S&P 500's gain of 0.89% in that time.
Wall Street will be looking for positivity from CHWY as it approaches its next earnings report date. The company is expected to report EPS of -$0.01, up 87.5% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.17 billion, up 27.36% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.12 per share and revenue of $8.99 billion. These totals would mark changes of +33.33% and +25.76%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for CHWY. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 14.63% higher. CHWY is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note CHWY's current valuation metrics, including its Forward P/E ratio of 726.64. For comparison, its industry has an average Forward P/E of 20, which means CHWY is trading at a premium to the group.
Meanwhile, CHWY's PEG ratio is currently 36.33. 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. CHWY's industry had an average PEG ratio of 2.58 as of yesterday's close.
The Consumer Products - Staples industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 106, putting it in the top 42% 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.
To follow CHWY in the coming trading sessions, be sure to utilize Zacks.com.
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