In the latest trading session, Chewy (CHWY) closed at $16.57, marking a +1.91% correction from the previous day’s closing price. The stock’s performance outperformed the S&P 500’s daily gain of 0.7%, while the Dow rose 0.01% and the tech-heavy Nasdaq gained 1.1%.
Shares of the online pet retailer have gained 5.72% over the past month, outpacing the Consumer Staples sector’s 1.92% gain and the S&P 500’s 4.03% gain.
Investors will be keen to watch Chewy’s performance in its upcoming earnings disclosure, which is scheduled to be released on May 29, 2024. The company is projected to post EPS of $0.21, which would represent 5% growth year-over-year. At the same time, our latest consensus estimate is calling for revenue of $2.85 billion, representing 2.27% growth year-over-year.
Looking at the full year, our Zacks Consensus Estimates are projecting earnings of $0.84 per share and revenue of $11.70 billion, which would suggest changes of +21.74% and +5.12%, respectively, from the prior year.
Additionally, investors should also note any recent revisions to analyst estimates for Chewy. Recent revisions tend to reflect the latest short-term business trends. As such, positive changes in estimates mean that analysts are optimistic about the company’s business and profitability.
Our research shows that these estimate revisions are directly correlated with proximate team stock price movements, and to capitalize on this, we have created the Zacks Rank, a proprietary model which incorporates these estimate changes and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an outside-audited track record of outperformance, with #1 ranked stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.17% higher. Chewy currently carries a Zacks Rank #1 (Strong Buy).
From a valuation perspective, Chewy is currently trading with a Forward P/E ratio of 19.46, which marks a premium compared to its industry’s average Forward P/E ratio of 18.76.
It’s also worth mentioning that CHWY has a PEG ratio of 0.78. The PEG ratio is similar to the commonly-used P/E ratio, but this metric also incorporates a company’s expected earnings growth rate. As of yesterday’s close, the average PEG ratio for the Consumer Goods – Staples industry was 2.08.
The Consumer Goods – Staples industry is a part of the Consumer Goods sector. This industry is currently ranked 47th in the Zacks Industry Rank, putting it in the top 19% of all 250+ industries.
The Zacks Industry Rank gauges the vitality of our particular industry groups by calculating the average Zacks Rank of the individual stocks included in the groups, and our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To track these and other stock-moving indicators during the coming trading sessions, be sure to utilize Zacks.com.
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