In the latest close session, Chewy (CHWY) was up +2% at $24.50. The stock exceeded the S&P 500, which registered a loss of 0.28% for the day. Meanwhile, the Dow experienced a rise of 0.26%, and the technology-dominated Nasdaq saw a decrease of 0.77%.

The online pet store's shares have seen an increase of 15.15% over the last month, surpassing the Retail-Wholesale sector's gain of 1.67% and the S&P 500's gain of 2.31%.

The upcoming earnings release of Chewy will be of great interest to investors. The company's earnings report is expected on September 9, 2026. It is anticipated that the company will report an EPS of $0.36, marking a 9.09% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $3.32 billion, reflecting a 6.83% rise from the equivalent quarter last year.

CHWY's full-year Zacks Consensus Estimates are calling for earnings of $1.53 per share and revenue of $13.49 billion. These results would represent year-over-year changes of +20.47% and +7.06%, respectively.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.31% decrease. Chewy currently has a Zacks Rank of #4 (Sell).

In terms of valuation, Chewy is currently trading at a Forward P/E ratio of 15.74. This expresses a discount compared to the average Forward P/E of 17.4 of its industry.

Also, we should mention that CHWY has a PEG ratio of 0.64. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Internet - Commerce industry stood at 1.26 at the close of the market yesterday.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 151, putting it in the bottom 39% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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Chewy (CHWY): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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