Yahoo Finance Chewy (CHWY) Dips More Than Broader Markets: What You Should Know
Chewy (CHWY) closed at $32.04 in the latest trading session, marking a -1.42% move from the prior day. This move lagged the S&P 500's daily loss of 1.12%. Meanwhile, the Dow lost 0.69%, and the Nasdaq, a tech-heavy index, lost 3.35%.
Heading into today, shares of the online pet store had lost 2.93% over the past month, lagging the Consumer Staples sector's loss of 2.43% and the S&P 500's gain of 1.61% in that time.
Chewy will be looking to display strength as it nears its next earnings release, which is expected to be May 31, 2023. The company is expected to report EPS of -$0.02, down 150% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.73 billion, up 12.54% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.02 per share and revenue of $11.24 billion, which would represent changes of -96.23% and +11.29%, respectively, from the prior year.
Any recent changes to analyst estimates for Chewy should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 175% higher within the past month. Chewy is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Chewy's current valuation metrics, including its Forward P/E ratio of 2166.67. For comparison, its industry has an average Forward P/E of 17.6, which means Chewy is trading at a premium to the group.
We can also see that CHWY currently has a PEG ratio of 108.33. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. CHWY's industry had an average PEG ratio of 2.39 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 206, putting it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
To follow CHWY in the coming trading sessions, be sure to utilize Zacks.com.
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Chewy (CHWY) : Free Stock Analysis Report
