Yahoo Finance Chewy (CHWY) Stock Drops Despite Market Gains: Important Facts to Note
The most recent trading session ended with Chewy (CHWY) standing at $15.61, reflecting a -0.61% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 1.2% for the day. On the other hand, the Dow registered a gain of 0.69%, and the technology-centric Nasdaq increased by 1.59%.
Coming into today, shares of the online pet store had gained 1.82% in the past month. In that same time, the Consumer Staples sector lost 1.51%, while the S&P 500 lost 4.16%.
Investors will be eagerly watching for the performance of Chewy in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.21, marking a 5% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.87 billion, indicating a 2.92% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.83 per share and a revenue of $11.74 billion, representing changes of +20.29% and +5.55%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Chewy. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Chewy is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Chewy is presently trading at a Forward P/E ratio of 18.82. This indicates a premium in contrast to its industry's Forward P/E of 18.53.
Investors should also note that CHWY has a PEG ratio of 0.75 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. The Consumer Products - Staples industry currently had an average PEG ratio of 2.01 as of yesterday's close.
The Consumer Products - Staples industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 59, finds itself in the top 24% echelons of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Chewy (CHWY) : Free Stock Analysis Report
