Group 1 - Chewy (CHWY) has gained approximately 1.1% year-to-date, outperforming the Retail-Wholesale sector, which has returned an average of -2.9% [4] - Chewy is ranked 2 (Buy) in the Zacks Rank system, indicating a positive earnings outlook with a 2.5% increase in the consensus estimate for full-year earnings over the past quarter [3] - The Internet - Commerce industry, which includes Chewy, has seen a loss of about 0.8% year-to-date, further highlighting Chewy's relative strength within its industry [6] Group 2 - Prosus N.V. Sponsored ADR (PROSY) is another stock in the Retail-Wholesale sector that has outperformed, with a year-to-date return of 18.3% and a consensus EPS estimate increase of 9.1% over the past three months [4][5] - Both Chewy and Prosus N.V. Sponsored ADR are positioned well for continued solid performance, making them noteworthy for investors interested in Retail-Wholesale stocks [7]

Pet retailer Chewy, Inc. (NYSE: CHWY ) Q4 2024 earnings are just around the corner on March 26th. The company has a chance to reignite the bullish sentiment after a deep selloff in the past few months, pushedI am a researcher and operations manager at DM Martins Research. Previously, I contributed to TheStreet and currently write for platforms such as TipRanks and GuruFocus. Here at Seeking Alpha, my goal is to provide insightful analysis primarily on foreign equities, with a focus on emerging markets, to e ...

Company Performance - Chewy's stock closed at $32.25, reflecting a +0.81% change from the previous session, which is lower than the S&P 500's gain of 1.08% [1] - The stock has decreased by 15.95% over the past month, underperforming the Retail-Wholesale sector's loss of 11.45% and the S&P 500's loss of 8.26% [1] Upcoming Earnings - Chewy's earnings report is anticipated on March 26, 2025, with an expected EPS of $0.21, indicating a 16.67% growth year-over-year [2] - Revenue is projected to be $3.2 billion, reflecting a 13.08% increase compared to the same quarter last year [2] Analyst Forecasts - Recent revisions to analyst forecasts for Chewy are important as they indicate short-term business trends, with positive revisions suggesting analyst optimism about the company's profitability [3] Zacks Rank and Valuation - Chewy currently holds a Zacks Rank of 2 (Buy), with the Zacks Consensus EPS estimate having increased by 0.96% over the past month [5] - The company is trading at a Forward P/E ratio of 25.72, which is higher than the industry average of 21.28 [5] Industry Metrics - Chewy has a PEG ratio of 0.69, compared to the Internet - Commerce industry's average PEG ratio of 1.13 [6] - The Internet - Commerce industry is part of the Retail-Wholesale sector and has a Zacks Industry Rank of 78, placing it in the top 32% of over 250 industries [6][7]

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chewy. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

Company Overview - Chewy, Inc. has recently completed its first full year under the leadership of CFO David Reeder, who noted that the year passed quickly due to unexpected developments in the business [4]. Business Performance - The company initially expected active customer numbers to remain flat for fiscal year 2024, but it has since guided that numbers would be flat to up, indicating positive momentum throughout the year [5].

Core Insights - Chewy's stock performance is evaluated with a rating of 6.9 out of 10, indicating a moderate level of confidence in the company's prospects [1] Company Analysis - The discussion highlights Chewy's strengths in the competitive pet supply market, suggesting a solid market position [1] - Challenges faced by Chewy are also addressed, indicating potential hurdles that may impact future performance [1] - Future growth potential is emphasized, suggesting that there are opportunities for expansion and increased market share [1]

Company Performance - Chewy's stock closed at $34.43, down 1.96% from the previous trading session, underperforming the S&P 500 which lost 0.5% [1] - Over the past month, Chewy's stock has decreased by 10.57%, while the Retail-Wholesale sector gained 1.04% and the S&P 500 lost 0.47% [1] Earnings Expectations - The upcoming earnings report for Chewy is expected to show an EPS of $0.20, reflecting an 11.11% increase year-over-year [2] - Revenue is anticipated to reach $3.2 billion, indicating a 13.11% increase compared to the same quarter last year [2] Analyst Estimates - Recent modifications to analyst estimates for Chewy are being closely monitored, as they often indicate changes in near-term business trends [3] - Positive revisions in estimates suggest a favorable outlook on the company's business health and profitability [3] Valuation Metrics - Chewy's Forward P/E ratio stands at 28.32, which is a premium compared to the industry's average Forward P/E of 23 [6] - The company has a PEG ratio of 0.76, while the Internet - Commerce industry has an average PEG ratio of 1.19 [6] Industry Ranking - The Internet - Commerce industry, part of the Retail-Wholesale sector, holds a Zacks Industry Rank of 67, placing it in the top 27% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - Chewy Inc. has experienced a significant stock rally of 16% over the past three months, driven by strong financial performance, increasing consumer demand, and operational efficiencies, outpacing the industry average rise of 10.8% [1] Financial Performance - Chewy's stock closed at $37.55, which is 6.3% below its 52-week high of $40.09, but it is trading above its 50 and 200-day moving averages, indicating a bullish trend [4] - The company's Autoship program generated $2.3 billion in sales in Q3 of fiscal 2024, reflecting an 8.7% year-over-year increase, highlighting its role in ensuring predictable revenues [7] - Chewy's active customer base grew by 160,000 in Q3, reaching 20.2 million, with net sales per active customer increasing by 4.2% year-over-year to $567 [8] Market Position and Growth Opportunities - Chewy has established a strong presence in the online pet retail sector through innovation and customer loyalty, with a growing portfolio that includes veterinary and pharmacy services [6] - The entry into the veterinary services market through Chewy Vet Care provides access to a $25 billion total addressable market, with six veterinary clinics operational by Q3 [9] Challenges and Competitive Landscape - Despite a promising growth trajectory, Chewy faces potential challenges such as slowing growth, customer acquisition saturation, and rising cost pressures [10] - The adjusted EBITDA margin expanded to 4.8% in Q3, but guidance for Q4 indicates a decline to 3.4% due to increased seasonal marketing costs [11] - Chewy operates in a price-sensitive market with competitors quickly adjusting pricing strategies, and inflationary pressures in logistics, labor, and raw materials could impact margins [12] Valuation Concerns - Chewy is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 29.98X, which is a premium compared to the industry average of 24.74X, indicating that investors may be paying a high price relative to expected earnings growth [14] Investment Outlook - Chewy's stock rally reflects solid fundamentals and strong customer engagement, but competitive pressures, rising costs, and premium valuation may limit near-term upside [16]

Company Performance - Chewy's stock closed at $38.51, reflecting a decrease of 0.28% from the previous trading session, underperforming compared to the S&P 500's gain of 0.39% [1] - Over the past month, Chewy's stock has increased by 7.97%, which is below the Retail-Wholesale sector's gain of 8.29% but above the S&P 500's gain of 1.7% [1] Upcoming Earnings - Chewy is expected to report an EPS of $0.20, indicating an 11.11% growth compared to the same quarter last year [2] - Revenue is projected to reach $3.2 billion, reflecting a 13.11% increase compared to the year-ago quarter [2] Analyst Estimates - Recent changes to analyst estimates for Chewy suggest a positive outlook, indicating optimism about the company's business and profitability [3] - The Zacks Rank system, which evaluates these estimate changes, provides actionable insights for investors [4] Zacks Rank and Valuation - Chewy currently holds a Zacks Rank of 3 (Hold), with a recent 0.32% decline in the Zacks Consensus EPS estimate [5] - The company has a Forward P/E ratio of 31.15, which is higher than the industry average of 20.55, and a PEG ratio of 0.84, compared to the Internet - Commerce industry's average of 1.1 [6] Industry Context - The Internet - Commerce industry, part of the Retail-Wholesale sector, has a Zacks Industry Rank of 40, placing it in the top 16% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Company Performance - Chewy's stock closed at $38.62, reflecting a +1.26% change from the previous trading day's close, outperforming the S&P 500 which gained 0.72% [1] - Over the last month, Chewy's shares increased by 2.89%, lagging behind the Retail-Wholesale sector's gain of 6.17% but outperforming the S&P 500's gain of 1.02% [1] Earnings Projections - Chewy's upcoming earnings per share (EPS) are projected to be $0.20, indicating an 11.11% increase from the same quarter last year [2] - The consensus estimate for quarterly revenue is $3.2 billion, representing a 13.11% increase from the year-ago period [2] Analyst Estimates - Recent changes to analyst estimates for Chewy reflect positive sentiment regarding the company's business operations and profit generation capabilities [3] - The Zacks Rank system, which incorporates these estimate changes, currently ranks Chewy at 3 (Hold) [5] Valuation Metrics - Chewy has a Forward P/E ratio of 30.76, which is a premium compared to the industry average Forward P/E of 21.67 [6] - The PEG ratio for Chewy is 0.83, while the Internet - Commerce industry average PEG ratio is 1.22 [6] Industry Context - The Internet - Commerce industry, part of the Retail-Wholesale sector, holds a Zacks Industry Rank of 70, placing it in the top 28% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]