Chico's FAS (CHS) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Chico's FAS (CHS) closed at $4.91, marking a -1.6% move from the previous day. This change lagged the S&P 500's daily gain of 2.24%. Elsewhere, the Dow gained 2.51%, while the tech-heavy Nasdaq lost 0.2%.
Prior to today's trading, shares of the clothing chain had gained 14.19% over the past month. This has outpaced the Retail-Wholesale sector's loss of 2.71% and the S&P 500's loss of 2.58% in that time.
Investors will be hoping for strength from Chico's FAS as it approaches its next earnings release, which is expected to be March 1, 2022. In that report, analysts expect Chico's FAS to post earnings of $0.05 per share. This would mark year-over-year growth of 113.89%. Meanwhile, our latest consensus estimate is calling for revenue of $498 million, up 28.95% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for Chico's FAS. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Chico's FAS is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that Chico's FAS has a Forward P/E ratio of 11.88 right now. For comparison, its industry has an average Forward P/E of 10.45, which means Chico's FAS is trading at a premium to the group.
The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 150, putting it in the bottom 41% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Chico's FAS, Inc. (CHS) : Free Stock Analysis Report
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