Chewy (CHWY) Stock Falls Amid Market Uptick: What Investors Need to Know

In the latest trading session, Chewy (CHWY) closed at $37.89, marking a -3.27% move from the previous day. This change lagged the S&P 500's daily gain of 0.14%. On the other hand, the Dow registered a loss of 0.04%, and the technology-centric Nasdaq increased by 0.38%.

Coming into today, shares of the online pet store had lost 6.54% in the past month. In that same time, the Retail-Wholesale sector gained 4.28%, while the S&P 500 gained 5.35%.

Investors will be eagerly watching for the performance of Chewy in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.33, indicating a 37.5% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.08 billion, indicating a 7.83% increase compared to the same quarter of the previous year.

CHWY's full-year Zacks Consensus Estimates are calling for earnings of $1.28 per share and revenue of $12.48 billion. These results would represent year-over-year changes of +23.08% and +5.21%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for Chewy. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Chewy boasts a Zacks Rank of #3 (Hold).

In terms of valuation, Chewy is currently trading at a Forward P/E ratio of 30.65. For comparison, its industry has an average Forward P/E of 22.25, which means Chewy is trading at a premium to the group.

Also, we should mention that CHWY has a PEG ratio of 3.3. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.66 based on yesterday's closing prices.

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 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.

To follow CHWY in the coming trading sessions, be sure to utilize Zacks.com.

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

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