Latest news with #InternetCommerce
Yahoo
24-07-2025
- Business
- Yahoo
Chewy (CHWY) is Attracting Investor Attention: Here is What You Should Know
Chewy (CHWY) is one of the stocks most watched by visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock. Over the past month, shares of this online pet store have returned -12.8%, compared to the Zacks S&P 500 composite's +5.7% change. During this period, the Zacks Internet - Commerce industry, which Chewy falls in, has gained 9%. The key question now is: What could be the stock's future direction? Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision. Revisions to Earnings Estimates Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements. Chewy is expected to post earnings of $0.33 per share for the current quarter, representing a year-over-year change of +37.5%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged. For the current fiscal year, the consensus earnings estimate of $1.28 points to a change of +23.1% from the prior year. Over the last 30 days, this estimate has remained unchanged. For the next fiscal year, the consensus earnings estimate of $1.53 indicates a change of +19.5% from what Chewy is expected to report a year ago. Over the past month, the estimate has changed +0.2%. With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Chewy. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: 12 Month EPS Projected Revenue Growth Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial. For Chewy, the consensus sales estimate for the current quarter of $3.08 billion indicates a year-over-year change of +7.8%. For the current and next fiscal years, $12.48 billion and $13.38 billion estimates indicate +5.2% and +7.2% changes, respectively. Last Reported Results and Surprise History Chewy reported revenues of $3.12 billion in the last reported quarter, representing a year-over-year change of +8.3%. EPS of $0.35 for the same period compares with $0.31 a year ago. Compared to the Zacks Consensus Estimate of $3.08 billion, the reported revenues represent a surprise of +1.21%. The EPS surprise was +2.94%. Over the last four quarters, Chewy surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period. Valuation Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects. Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is. As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Chewy is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. Conclusion The facts discussed here and much other information on might help determine whether or not it's worthwhile paying attention to the market buzz about Chewy. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term. 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 Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
18-07-2025
- Business
- Globe and Mail
Amazon: Strong Industry, Solid Earnings Estimate Revisions
One stock that might be an intriguing choice for investors right now is Inc. AMZN. This is because this security in the Internet - Commerce space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective. This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This is arguably taking place in the Internet - Commerce space as it currently has a Zacks Industry Rank of 73 out of more than 250 industries, suggesting it is well-positioned from this perspective, especially when compared to other segments out there. Meanwhile, Amazon is actually looking pretty good on its own too. The firm has seen solid earnings estimate revision activity over the past month, suggesting analysts are becoming a bit more bullish on the firm's prospects in both the short and long term. In fact, over the past month, current quarter estimates have risen from $1.31 per share to $1.32 per share, while current year estimates have risen from $6.19 per share to $6.27 per share. The company currently carries a Zacks Rank #3 (Hold), which is also a favorable signal. You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here. So, if you are looking for a decent pick in a strong industry, consider Amazon. Not only is its industry currently in the top third, but it is seeing solid estimate revisions as of late, suggesting it could be a very interesting choice for investors seeking a name in this great industry segment. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include Stock #1: A Disruptive Force with Notable Growth and Resilience Stock #2: Bullish Signs Signaling to Buy the Dip Stock #3: One of the Most Compelling Investments in the Market Stock #4: Leader In a Red-Hot Industry Poised for Growth Stock #5: Modern Omni-Channel Platform Coiled to Spring Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%. Download Atomic Opportunity: Nuclear Energy's Comeback free today. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
