Markets
News
Analysis
User
24/7
Economic Calendar
Education
Data
- Names
- Latest
- Prev
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
A:--
F: --
A:--
F: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
No matching data
Latest Views
Latest Views
Trending Topics
To quickly learn market dynamics and follow market focuses in 15 min.
In the world of mankind, there will not be a statement without any position, nor a remark without any purpose.
Inflation, exchange rates, and the economy shape the policy decisions of central banks; the attitudes and words of central bank officials also influence the actions of market traders.
Money makes the world go round and currency is a permanent commodity. The forex market is full of surprises and expectations.
Top Columnists
Enjoy exciting activities, right here at FastBull.
The latest breaking news and the global financial events.
I have 5 years of experience in financial analysis, especially in aspects of macro developments and medium and long-term trend judgment. My focus is maily on the developments of the Middle East, emerging markets, coal, wheat and other agricultural products.
BeingTrader chief Trading Coach & Speaker, 8+ years of experience in the forex market trading mainly XAUUSD, EUR/USD, GBP/USD, USD/JPY, and Crude Oil. A confident trader and analyst who aims to explore various opportunities and guide investors in the market. As an analyst I am looking to enhance the trader’s experience by supporting them with sufficient data and signals.
Latest Update
Risk Warning on Trading HK Stocks
Despite Hong Kong's robust legal and regulatory framework, its stock market still faces unique risks and challenges, such as currency fluctuations due to the Hong Kong dollar's peg to the US dollar and the impact of mainland China's policy changes and economic conditions on Hong Kong stocks.
HK Stock Trading Fees and Taxation
Trading costs in the Hong Kong stock market include transaction fees, stamp duty, settlement charges, and currency conversion fees for foreign investors. Additionally, taxes may apply based on local regulations.
HK Non-Essential Consumer Goods Industry
The Hong Kong stock market encompasses non-essential consumption sectors like automotive, education, tourism, catering, and apparel. Of the 643 listed companies, 35% are mainland Chinese, making up 65% of the total market capitalization. Thus, it's heavily influenced by the Chinese economy.
HK Real Estate Industry
In recent years, the real estate and construction sector's share in the Hong Kong stock index has notably decreased. Nevertheless, as of 2022, it retains around 10% market share, covering real estate development, construction engineering, investment, and property management.
Hongkong, China
Ho Chi Minh, Vietnam
Dubai, UAE
Lagos, Nigeria
Cairo, Egypt
White Label
Data API
Web Plug-ins
Affiliate Program
View All
No data
Not Logged In
Log in to access more features
FastBull Membership
Not yet
Purchase
Log In
Sign Up
Hongkong, China
Ho Chi Minh, Vietnam
Dubai, UAE
Lagos, Nigeria
Cairo, Egypt
White Label
Data API
Web Plug-ins
Affiliate Program
Chewy Inc. CHWY has been riding a wave of momentum, posting a 22.5% gain in the past month. Investors are excited, wondering if the pet e-commerce giant has more room to grow. With Chewy's stock already performing well in the broader market, the key question remains — should you buy more, hold tight or consider cashing out while the momentum lasts?
The stock has comfortably outpaced the industry’s modest rise of 5%. Chewy’s unmatched scale and operational capabilities have also helped it outperform the Retail-Wholesale sector and the S&P 500 index, which posted respective gains of 5% and 0.8%.
The company’s performance is fueled by strong demand for pet products and services, buoyed by a loyal customer base and a growing subscription model. While the numbers are promising, there are challenges on the horizon. Macroeconomic pressures and rising competition in the e-commerce space could influence the stock’s future growth trajectory.
Chewy stock closed at $30.24 during yesterday’s trading session, sitting 22.7% below its 52-week high of $39.10, reached on June 27, 2024. CHWY recently overtook the 20-day moving average, and this suggests a bullish trend. With that in mind, let’s dive into CHWY’s prospects and determine the best course of action for your portfolio.
Chewy's Autoship and Expanding Services Propel Growth
Chewy has established itself as a formidable player in the online pet retail market, and recent performance metrics indicate that the company is well-positioned for long-term growth. This makes it an attractive prospect for investors seeking both stability and upside potential.
In the second quarter of 2024, Chewy reported decent financial results, with net sales reaching $2.86 billion, marking a 2.6% year-over-year increase. While this growth appears modest, it hit the high end of the company’s guidance, demonstrating the resilience of Chewy’s business model, even as the broader pet care market shows signs of normalization.
A primary factor behind this growth was the strength of Chewy’s Autoship program, which saw a 5.8% year-over-year increase in sales, contributing a significant 78.4% of total net sales. Autoship, which functions as a subscription-based service, has become a core component of Chewy’s revenue strategy. The program’s growth is driven by robust demand for non-discretionary categories like consumables and healthcare, which accounted for 85% of total sales during the quarter.
Chewy’s Net Sales Per Active Customer hit a new record at $565, reflecting a 6.2% increase compared to the prior year. This surge is fueled by the company’s premium product offerings, such as high-end pet food and healthcare products, along with strong repeat purchasing from its loyal customer base. At the close of the quarter, Chewy boasted about 20 million active customers.
Chewy’s expansion into veterinary services is another key driver of customer acquisition and retention. In the quarter under discussion, the company opened two more Vet Care clinics, bringing its total to six locations. These clinics not only enhance customer loyalty but also act as strategic entry points for new customers, embedding them into the Chewy ecosystem.
The company’s Sponsored Ads business has exceeded expectations and is on track to reach the lower end of the company’s long-term target of 1% to 3% of net sales by the end of 2024. This growth is supported by expanded inventory, increasing advertiser demand and improved customer relevancy, signaling another strong revenue stream for the future.
Chewy’s Financial Snapshot
Chewy’s strong financial position is validated by its free cash flow generation of $91 million in the second quarter. The company’s ability to consistently generate free cash flow allows it to fund strategic investments, such as expanding its Vet Care clinics and advancing its Sponsored Ads platform.
Chewy ended the quarter with $695 million in cash, cash equivalents and marketable securities while remaining debt-free, which provides it with significant financial flexibility. Chewy also returned capital to shareholders, repurchasing approximately 17.6 million shares for $500 million in a transaction separate from its existing $500 million share repurchase program. It bought back 1.3 million shares for $32.7 million under its authorized program.
Chewy Foresees Sales Growth and Margin Expansion
For the third quarter of fiscal 2024, Chewy anticipates net sales between $2.84 billion and $2.86 billion, which implies year-over-year growth of 3% to 4%. The company also reaffirmed its fiscal 2024 net sales forecast of $11.6 billion to $11.8 billion, suggesting a 4% to 6% increase from the last year.
The adjusted EBITDA margin is now projected between 4.5% and 4.7% for the current fiscal. This marks the second upward revision in the current fiscal year, driven by continued success in improving the product mix and leveraging operational efficiencies.
With capital expenditures projected at 1.5% to 2% of net sales and free cash flow conversion expected to remain above 80%, Chewy is well-positioned to maintain its financial stability and support its strategic growth initiatives.
Is CHWY Still Attractive After Recent Spike in Stock Price?
From a valuation perspective, Chewy shares present an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-sales ratio of 1.04, below the five-year median of 1.70 and the industry’s average of 1.72, the stock offers compelling value for investors seeking exposure to the sector. The company currently has a Value Score of B, further validating its appeal.
How are Zacks Consensus Estimates Faring for CHWY?
Reflecting the positive sentiment around Chewy, the Zacks Consensus Estimate for earnings per share has seen upward revisions. Over the past 30 days, analysts have increased their estimates for the current and next fiscal year by 34.1% to $1.14 and 19.4% to $1.23 per share, respectively. These estimates indicate expected year-over-year growth rates of 65.2% and 8.1%, respectively.
Your Best Investment Play for CHWY Stock
Chewy has showcased strong performance, marked by substantial stock appreciation, robust financial metrics and strategic initiatives aimed at driving future growth in a competitive landscape that includes Petco Health and Wellness Company, Inc. WOOF, Central Garden & Pet Company CENT and BARK, Inc. BARK. The company’s ability to expand high-margin businesses like Vet Care and Sponsored Ads, along with disciplined cost management, supports margin expansion and free cash flow generation.
With a solid balance sheet, consistent capital returns and an optimistic outlook for the remainder of 2024, Chewy presents a compelling investment play for shareholders looking for long-term growth. CHWY currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Investment Research
U.S. stocks were mixed, with the Dow Jones index falling around 50 points on Thursday.
Shares of Signet Jewelers Limited rose sharply during Thursday's session after reporting better-than-expected second-quarter earnings and stronger than anticipated third-quarter revenue outlook.
Signet reportedasecond-quarter sales decline of 7.6% year-on-year to $1.49 billion, missing the analyst consensus estimate of $1.50 billion. Adjusted EPS of $1.25 beat the analyst consensus estimate of $1.14.
Signet Jewelers shares jumped 18.8% to $92.83 on Thursday.
Here are some other big stocks recording gains in today's session.
Now Read This:
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
It is not surprising that before an earnings season, every investor looks for stocks that can beat market expectations. This is because investors always try to position themselves ahead of time and look to tap stocks that are high-quality in nature.
In this regard, we ran a screener that yielded Intapp INTA, Okta OKTA, Deckers Outdoor DECK and Chewy CHWY as the likely winners on an earnings beat potential.
Why Is a Positive Earnings Surprise So Important?
Historically, stocks of companies with solid quarterly earnings (on a nominal basis) tank if they miss or merely meet market expectations. After all, a 20% earnings rise (though it apparently looks good) doesn’t tell you if earnings growth has been exhibiting a decelerating trend.
Also, seasonal fluctuations come into play sometimes. If a company’s Q1 is seasonally weak and Q4 strong, then it is likely to report a sequential earnings decline. In such cases, growth rates are misleading while judging the true health of a company.
On the other hand, after much brainstorming and analysis of companies’ financials and initiatives, Wall Street analysts project earnings of companies. They in fact club their insights and a company’s guidance when deriving an earnings estimate.
Thus, outperforming that estimate is almost equivalent to beating the company’s own expectation as well as the market perception. And if the margin of earnings surprise is big, it typically drives the stock higher right after the release. Thus, more than anything else, an earnings surprise can push a stock higher.
How to Find Stocks that Can Beat?
Now, finding stocks that have the potential to beat on the bottom line may be investors’ dream but not an easy job. One way to do this is to look at the earnings surprise history of the company.
An impressive track in this regard generally acts as a catalyst in sending a stock higher. It indicates the company’s ability to surpass estimates. And investors generally believe that the company will apply the same secret sauce to execute yet another earning beat in its next release.
The Winning Strategy
In order to shortlist stocks that are likely to come up with an earnings surprise, we chose the following as our primary screening parameters.
Last EPS Surprise greater than or equal to 10%: Stocks delivering positive surprise in the last quarter tend to surprise again.
Average EPS Surprise in the last four quarters greater than 20%: We lifted the bar for outperformance slight higher by setting the average earnings surprise for the last four quarters at 20%.
Average EPS Surprise in the last two quarters greater than 20%: This points to a more consistent surprise history and makes the case for another surprise even stronger.
In addition, we place a few other criteria that push up the chance of a positive surprise.
Zacks Rank less than or equal to 2: Only companies with a Zacks Rank #1 (Strong Buy) or 2 (Buy) rating can get through.
Earnings ESP greater than zero: A stock needs to have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3 for an earnings beat to happen, as per our proven model.
In order to zero in on those that have long-term growth potential and high trading liquidity we have added the following parameters too:
Next 3–5 Years Estimated EPS Growth (Per Year) greater than 10%: Solid expected earnings growth exhibits the stock’s long-term growth prospects.
Average 20-day Volume greater than 100,000: High trading volume implies that the stocks have adequate liquidity.
A handful of criteria has narrowed down the universe from over 7,700 stocks to only seven.
Here are four out of seven stocks:
Intapp: The Zacks Rank #2 company is a provider of industry-specific, cloud-based software solutions that enable connected professional and financial services firms. You can see the complete list of today’s Zacks #1 Rank stocks here.
The average earnings surprise of INTA for the past four quarters is 77.08%.
Okta:The Zacks Rank #2 company is a provider of identity for the enterprise. The company's products consist of Okta information technology Products and Okta for Developers.
The average earnings surprise of OKTA for the past four quarters is 27.15%.
Deckers Outdoor:The Zacks Rank #2 company is a leading designer, producer and brand manager of innovative, niche footwear and accessories developed for outdoor sports and other lifestyle-related activities.
The average earnings surprise of DECK for the past four quarters is 47.16%.
Chewy: Chewy Inc. operates as an online pet retailer. The company offers pet products that include dry and wet food, toys, mats, biscuits, vitamins and supplements.The stock has a Zacks Rank #2.
The average earnings surprise of CHWY for the past four quarters is 50.85%.
You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.
The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.
Click here to sign up for a free trial to the Research Wizard today.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
Disclosure: Performance information for Zacks’ portfolios and strategies are available at: http://www.zacks.com/performance.
Zacks Investment Research
White Label
Data API
Web Plug-ins
Poster Maker
Affiliate Program
The risk of loss in trading financial instruments such as stocks, FX, commodities, futures, bonds, ETFs and crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.
No decision to invest should be made without thoroughly conducting due diligence by yourself or consulting with your financial advisors. Our web content might not suit you since we don't know your financial conditions and investment needs. Our financial information might have latency or contain inaccuracy, so you should be fully responsible for any of your trading and investment decisions. The company will not be responsible for your capital loss.
Without getting permission from the website, you are not allowed to copy the website's graphics, texts, or trademarks. Intellectual property rights in the content or data incorporated into this website belong to its providers and exchange merchants.