In the latest trading session, Chewy (CHWY) closed at $22.82, marking a -2.06% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.66%. At the same time, the Dow added 1.19%, and the tech-heavy Nasdaq gained 2.78%.

Coming into today, shares of the online pet store had gained 13.11% in the past month. In that same time, the Retail-Wholesale sector gained 0.61%, while the S&P 500 lost 1.49%.

The upcoming earnings release of Chewy will be of great interest to investors. The company is predicted to post an EPS of $0.36, indicating a 9.09% growth compared to the equivalent quarter last year. 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 entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.53 per share and a revenue of $13.49 billion, representing changes of +20.47% and +7.06%, respectively, from the prior year.

Any recent changes to analyst estimates for Chewy should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Chewy possesses a Zacks Rank of #5 (Strong Sell).

Valuation is also important, so investors should note that Chewy has a Forward P/E ratio of 15.25 right now. This signifies a discount in comparison to the average Forward P/E of 16.71 for its industry.

It's also important to note that CHWY currently trades at a PEG ratio of 0.62. 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 1.27 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 181, putting 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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Chewy (CHWY): Free Stock Analysis Report

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