Investing in Chewy (CHWY): Bullish Wall Street Views and Brokerage Recommendations

Chewy (CHWY) has an average brokerage recommendation (ABR) of 1.75, with 17 out of 28 recommendations being Strong Buy and one being Buy. While brokerage recommendations can influence a stock's price, they are not always reliable, as analysts may have vested interests in the companies they cover. Validating the Zacks Rank, which classifies stocks into five groups based on their near-term price performance, with ABR can help make a profitable investment decision.

Chewy Inc. (CHWY), the leading online pet store, recently closed at $38.30, up 1.3% from the previous trading session. The stock outperformed the S&P 500, which lost 0.4% for the day, while the Dow and Nasdaq saw losses of 0.98% and gains of 0.18%, respectively. Over the past month, Chewy's shares have decreased by 9.24%, lagging behind the Retail-Wholesale sector's gain of 4.14% and the S&P 500's gain of 4.97%.

Investors are closely watching Chewy's upcoming earnings report, expected to show an earnings per share (EPS) of $0.33, a 37.5% increase from the same period last year. The Zacks Consensus Estimate for revenue is projecting net sales of $3.08 billion, up 7.83% from the year-ago period. For the full year, the Zacks Consensus Estimates forecast earnings of $1.28 per share and revenue of $12.48 billion, indicating changes of +23.08% and +5.21%, respectively, compared to the previous year.

Chewy's Zacks Rank is currently #3 (Hold), indicating a neutral outlook. The company is trading at a Forward P/E ratio of 29.58, which is higher than the industry average of 21.92, suggesting a premium valuation. Additionally, Chewy's PEG ratio of 3.18 is higher than the industry average of 1.4.

Investors should also consider brokerage recommendations, which can influence a stock's price. Chewy has an average brokerage recommendation (ABR) of 1.75, with 17 out of 28 recommendations being Strong Buy and one being Buy. However, brokerage recommendations are not always reliable due to analysts' vested interests in the companies they cover. To make a more informed investment decision, investors can validate the Zacks Rank with the ABR. The Zacks Rank is a quantitative model that harnesses the power of earnings estimate revisions and has a proven track record of predicting near-term stock price movements.

References:
[1] https://finance.yahoo.com/news/chewy-chwy-gains-market-dips-215003618.html
[2] https://finance.yahoo.com/news/invest-chewy-chwy-based-bullish-133003635.html
[3] https://finance.yahoo.com/news/brokers-suggest-investing-robinhood-markets-133003200.html