Chewy (CHWY) Stock Drops Despite Market Gains: Important Facts to Note

In the latest close session, Chewy (CHWY) was down 3.09% at $35.11. This change lagged the S&P 500's daily gain of 0.79%. Elsewhere, the Dow saw an upswing of 1.01%, while the tech-heavy Nasdaq appreciated by 1.15%. The online pet store's shares have seen a decrease of 4.53% over the last month, not keeping up with the Retail-Wholesale sector's loss of 1.37% and the S&P 500's gain of 1.27%.Market participants will be closely following the financial results of Chewy in its upcoming release. On that day, Chewy is projected to report earnings of $0.31 per share, which would represent year-over-year growth of 55%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.1 billion, up 7.58% from the year-ago period. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.27 per share and revenue of $12.59 billion. These totals would mark changes of +22.12% and +6.13%, respectively, from last year. Investors might also notice recent changes to analyst estimates for Chewy. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 0.45% lower within the past month. As of now, Chewy holds a Zacks Rank of #3 (Hold). Digging into valuation, Chewy currently has a Forward P/E ratio of 28.5. This represents a premium compared to its industry average Forward P/E of 23.02. We can additionally observe that CHWY currently boasts a PEG ratio of 3.67. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Commerce was holding an average PEG ratio of 1.46 at yesterday's closing price. The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 54, this industry ranks in the top 22% of all industries, numbering over 250. The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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. Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chewy (CHWY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks