Chewy (CHWY) closed at $37.21 in the latest trading session, marking a +0.19% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.58% for the day. Meanwhile, the Dow experienced a rise of 0.75%, and the technology-dominated Nasdaq saw an increase of 0.55%.

The the stock of online pet store has risen by 14.24% in the past month, leading the Retail-Wholesale sector's loss of 0.19% and the S&P 500's loss of 0.84%.

The investment community will be closely monitoring the performance of Chewy in its forthcoming earnings report. The company's upcoming EPS is projected at $0.34, signifying a 9.68% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $3.07 billion, indicating a 6.85% upward movement from the same quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.23 per share and a revenue of $12.4 billion, signifying shifts of +18.27% and +4.52%, respectively, from the last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Chewy. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has shifted 3.83% upward. Chewy presently features a Zacks Rank of #2 (Buy).

In the context of valuation, Chewy is at present trading with a Forward P/E ratio of 30.17. This signifies a premium in comparison to the average Forward P/E of 23.45 for its industry.

We can also see that CHWY currently has a PEG ratio of 3.19. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Internet - Commerce industry stood at 1.39 at the close of the market yesterday.

The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 83, placing it within the top 34% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much 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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