In the latest close session, Chewy (CHWY) was up +1.64% at $22.97. The stock exceeded the S&P 500, which registered a gain of 1.48% for the day. On the other hand, the Dow registered a gain of 1.32%, and the technology-centric Nasdaq increased by 2.13%.

Shares of the online pet store witnessed a gain of 8.39% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 7.19%, and the S&P 500's gain of 0.19%.

Analysts and investors alike will be keeping a close eye on the performance of Chewy in its upcoming earnings disclosure. The company is expected to report EPS of $0.36, up 9.09% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $3.32 billion, indicating a 6.83% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.53 per share and revenue of $13.49 billion, which would represent changes of +20.47% and +7.06%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Chewy. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, Chewy possesses a Zacks Rank of #5 (Strong Sell).

In the context of valuation, Chewy is at present trading with a Forward P/E ratio of 14.79. This represents a discount compared to its industry average Forward P/E of 18.1.

We can also see that CHWY currently has a PEG ratio of 0.6. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.21 based on yesterday's closing prices.

The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 181, positioning it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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

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

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