Chewy Inc. shares declined during pre-market trading Tuesday - after reporting wider-than-expected losses the previous day, and ahead of the expiry of early investors’ lock-up period.
On Monday, the online retailer of pet food and other pet-related products reported third quarter loss of -20 cents per share –which was wider than anticipated.
However, total sales increased +40% from the same period last year to $1.23 billion. The company’s customer base grew +33% to 12.7 million.
For the full-year, Chewy expects sales to range between $4.82 billion and $4.84 billion. It projects adjusted operating profit margin improvement of between 4.4% and 4.6%.
In June, Chewy went public, finishing its first day of trading at $34.99 per share , +59% above its IPO price. It raised more than $1 billion in its public debut. But the lock-up expiry is tomorrow, which would let some 83% of the outstanding shares to be freely traded – which means, early investors get a chance to cash out from their IPO holdings.
CHWY saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on April 18, 2024. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 47 instances where the indicator turned negative. In of the 47 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
The Momentum Indicator moved below the 0 level on April 18, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on CHWY as a result. In of 83 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
CHWY moved below its 50-day moving average on April 15, 2024 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CHWY declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
CHWY broke above its upper Bollinger Band on April 11, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
The 10-day moving average for CHWY crossed bullishly above the 50-day moving average on April 16, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 13 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CHWY advanced for three days, in of 264 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. CHWY’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: CHWY's P/B Ratio (13.387) is slightly higher than the industry average of (3.740). CHWY has a moderately high P/E Ratio (174.444) as compared to the industry average of (59.414). Projected Growth (PEG Ratio) (0.709) is also within normal values, averaging (1.877). Dividend Yield (0.000) settles around the average of (0.026) among similar stocks. P/S Ratio (0.608) is also within normal values, averaging (10.312).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. CHWY’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a company which operates as a web-based, pet supplies e-tailer.
Industry InternetRetail