Chewy Defies Market Slump with 1.14 Gains as Earnings Outlook Boosts Optimism Despite 25.8 Volume Drop to 367th Ranked Trading

On August 18, 2025, Chewy (CHWY) closed at $40.95, rising 1.14% despite broader market declines. The stock’s trading volume dropped 25.8% to $260 million, ranking 367th in the market. This outperformed the S&P 500’s 0.01% decline and the Nasdaq’s 0.03% gain, reflecting resilience in a mixed market environment.

Analysts highlight Chewy’s upcoming earnings as a key catalyst. The company is projected to report $0.33 EPS, a 37.5% year-over-year increase, with revenue expected at $3.08 billion, up 7.83%. Full-year estimates suggest $1.28 EPS and $12.48 billion in revenue, reflecting 23.08% and 5.21% growth, respectively. Recent analyst revisions indicate optimism about the business outlook, aligning with the stock’s near-term performance.

Valuation metrics show Chewy trading at a premium to its sector. The Forward P/E ratio of 31.68 exceeds the industry average of 19.52, while the PEG ratio of 3.41 signals stretched expectations compared to the sector’s 1.52. Despite this, the Zacks Rank of #2 (Buy) suggests positive momentum, though investors should weigh growth assumptions against valuation risks.

A strategy of buying the top 500 stocks by daily volume and holding for one day from 2022 to 2025 yielded a 31.52% total return, averaging 0.98% per day. This highlights short-term momentum potential but underscores market volatility and timing risks inherent in such approaches.