Chewy (CHWY) closed the latest trading day at $32.25, indicating a +0.81% change from the previous session's end. This change lagged the S&P 500's 1.08% gain on the day. On the other hand, the Dow registered a gain of 0.92%, and the technology-centric Nasdaq increased by 1.41%.
The online pet store's stock has dropped by 15.95% in the past month, falling short of the Retail-Wholesale sector's loss of 11.45% and the S&P 500's loss of 8.26%.
The upcoming earnings release of Chewy will be of great interest to investors. The company's earnings report is expected on March 26, 2025. The company is predicted to post an EPS of $0.21, indicating a 16.67% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $3.2 billion, reflecting a 13.08% rise from the equivalent quarter last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Chewy. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.96% higher. Chewy is currently sporting a Zacks Rank of #2 (Buy).
Looking at valuation, Chewy is presently trading at a Forward P/E ratio of 25.72. This signifies a premium in comparison to the average Forward P/E of 21.28 for its industry.
We can also see that CHWY currently has a PEG ratio of 0.69. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 1.13.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 32% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
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