Group 1 - Chewy will be added to the S&P MidCap 400, replacing Stericycle, which is being acquired by Waste Management [2] - The inclusion in the index is expected to boost Chewy's stock as ETFs tracking the S&P MidCap 400 will buy its shares [2] - S&P Global's decision reflects confidence in Chewy's financial viability and overall business performance [3] Group 2 - Chewy's revenue growth has slowed, with a 2.6% increase in Q2 to $2.86 billion, although profits improved due to cost control [4] - The pet products industry is showing signs of recovery after a post-pandemic slump, indicating potential for Chewy's growth [5] - Inclusion in the mid-cap index positions Chewy closer to potentially joining the S&P 500, contingent on significant growth [4]

Core Viewpoint - The article emphasizes that investing in quality stocks remains a favorable strategy, particularly in the context of growth stocks that have shown mixed performance amid economic uncertainties [1][2]. PayPal - PayPal Holdings has seen its shares increase by approximately 30% since the start of 2024, despite a slight decline following its recent earnings report [3][4]. - The company has faced challenges post-pandemic, including difficult year-over-year comparisons and stalling user growth, which led to some investors selling off the stock [4][5]. - In Q3, PayPal reported a 6% increase in net revenue to $7.8 billion and a 19% rise in operating income to $1.4 billion, although active accounts grew only 1% [7]. - Total payment volume increased by 9%, and payment transactions per active account also rose by 9% on a trailing-12-month basis [8]. - The company generated a net income of $1.1 billion, a slight decrease of 1% from the previous year, and cash from operations totaled $1.6 billion [8][9]. Chewy - Chewy's shares have surged by about 67% over the last six months, indicating renewed investor interest in the e-commerce platform for pet products [10]. - The company has diversified its offerings, including pet health insurance and telehealth services, to enhance competitiveness in the pet spending market [11][12]. - Chewy has opened brick-and-mortar veterinary locations, which align with its long-term strategy and have shown promising early indicators for customer acquisition and engagement [13][14]. - In Q2, Chewy's net sales rose by 2.6% to $2.86 billion, with net income soaring by 1,380% to over $299 million [15]. - Autoship sales accounted for 78% of net sales, reflecting a 6% increase from the previous year, and 85% of net sales came from consumables and health categories, which are considered non-discretionary [15][16].

NEW YORK, Nov. 1, 2024 /PRNewswire/ -- Chewy Inc. (NYSE: CHWY) will replace Stericycle Inc. (NASD: SRCL) in the S&P MidCap 400 effective prior to the opening of trading on Wednesday, November 6. S&P 500 constituent Waste Management Inc. (NYSE: WM) is acquiring Stericycle in a deal expected to be completed soon, pending final closing conditions.Following is a summary of the changes that will take place prior to the open of trading on the effective date: Effective Date Index Name       Action Company Na ...

Core Viewpoint - Keith Gill, known as "Roaring Kitty," has divested his entire stake in Chewy after initially acquiring a 6.6% ownership, which raised concerns about stock volatility among existing shareholders [1][2]. Group 1: Investment Details - In July, Gill purchased over 9 million shares of Chewy, valued at more than $230 million at that time [2]. - Chewy's stock price was $26.54 per share as of mid-morning Wednesday, reflecting a year-to-date increase of 18.47% [1]. Group 2: Market Impact and Concerns - Gill's investment raised concerns among Chewy's management regarding potential volatility affecting institutional investors, as his following could lead to increased trading activity [3]. - The connection between Gill's investments in Chewy and GameStop is noted, as Ryan Cohen, the founder of Chewy, is also the CEO of GameStop [2]. Group 3: Background on Keith Gill - Gill gained fame through social media, particularly for his cat memes and YouTube streams, which significantly influenced GameStop's stock price in 2021 [3][4]. - His actions have led to a cult-like following among retail investors, impacting market dynamics [4].

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, The ...

Company Performance - Chewy's stock closed at $27.09, reflecting a -1.35% change from the previous session, underperforming the S&P 500 which gained 0.22% [1] - The stock has decreased by 6.44% over the past month, compared to a loss of 0.42% in the Retail-Wholesale sector and a gain of 1.47% in the S&P 500 [1] - Upcoming earnings per share (EPS) is projected at $0.23, indicating a 53.33% increase year-over-year, with revenue expected to reach $2.86 billion, a 4.44% increase from the same quarter last year [1] Full Year Estimates - Analysts expect Chewy to report earnings of $1.14 per share and revenue of $11.83 billion for the full year, representing increases of +65.22% and +6.34% respectively from the previous year [2] - Recent changes in analyst estimates suggest a positive outlook for the company's business, as these revisions often reflect short-term business dynamics [2] Valuation Metrics - Chewy currently has a Forward P/E ratio of 24.09, which is higher than the industry average of 22.4 [3] - The company's PEG ratio stands at 0.77, compared to the industry average PEG ratio of 1.25, indicating a favorable growth outlook relative to its valuation [3] Industry Ranking - The Internet - Commerce industry, part of the Retail-Wholesale sector, holds a Zacks Industry Rank of 92, placing it in the top 37% of over 250 industries [3] - The Zacks Rank system indicates that top-rated industries outperform lower-rated ones by a factor of 2 to 1 [4]

Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, October 24:Okta, Inc. (OKTA) : This identity verification company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.8% over the last 60 days.Okta has a PEG ratio of 1.23 compared with 2.80 for the industry. The company possesses a Growth Score of B.The Gap, Inc. (GAP) : This apparel retail company carries a Zacks Rank #1, and has witnessed t ...

The stock market can trap investors who get either too long or too short on a specific company or trend. Whenever this happens, the market has a way of correcting these imbalances through sharp rotations. Those who are too long on a stock or trend and see a sharp selloff will likely run for the exit, creating additional selling pressure on the trend.The inverse is also true for short sellers. When too many people—and too much capital—go on the short side, any time there is a sharp rally, these short sellers ...

Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:Chewy (CHWY) : This online pet retailer which offers pet products including dry and wet food, toys, mats, biscuits, vitamins and supplements, has seen the Zacks Consensus Estimate for its current year earnings increasing 34.1% over the last 60 days.Ericsson (ERIC) : This company which is a leading provider of communication networks, telecom services and support solutions, has seen the Zacks Consensus Estimate for its current year earnin ...

The latest trading session saw Chewy (CHWY) ending at $29.32, denoting a +0.14% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily loss of 0.02%. Meanwhile, the Dow gained 0.38%, and the Nasdaq, a tech-heavy index, added 0.04%. The online pet store's shares have seen a decrease of 5.24% over the last month, not keeping up with the RetailWholesale sector's gain of 3.68% and the S&P 500's gain of 3.77%. The investment community will be paying close attention to ...