Chewy(CHWY, $42.78) misses Q4 expectations
Chewy Inc. reported earnings and revenue that missed analysts’ expectations.
The online retailer of pet food and other pet products reported a loss per share of -$0.15 for the fourth quarter, steeper than analysts’ expectations of a loss of -$0.06 a share.
Revenue of $2.39 billion came in lower than analysts’ expectation of $2.42 billion.
Chewy mentioned that there were uptrends in site traffic and order volumes. However, it saw operating conditions in some regions worsen due to the spread of the omicron variant. According to the company, near-term pressures on gross margin likely peaked in the fourth quarter, and they are "already seeing signs of recovery in the current quarter."
Looking ahead, Chewy expects net sales in the first quarter in the range of $2.4 billion to $2.43 billion, and projects full-year fiscal 2022 net sales between $10.2 billion and $10.4 billion.
CHWY's RSI Oscillator ascends from oversold territory
The RSI Oscillator for CHWY moved out of oversold territory on May 12, 2022. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 14 similar instances when the indicator left oversold territory. In 13 of the 14 cases the stock moved higher. This puts the odds of a move higher at 90%.
Current price $26.41 is below $114.31 the lowest resistance line found by A.I. Throughout the month of 04/13/22 - 05/16/22, the price experienced a -39% Downtrend, while the week of 05/09/22 - 05/16/22 shows a +0.30% Uptrend.
The Stochastic Indicator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 28 of 34 cases where CHWY's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 82%.
Following a +18.17% 3-day Advance, the price is estimated to grow further. Considering data from situations where CHWY advanced for three days, in 129 of 164 cases, the price rose further within the following month. The odds of a continued upward trend are 79%.
CHWY may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Momentum Indicator moved below the 0 level on April 14, 2022. You may want to consider selling the stock, shorting the stock, or exploring put options on CHWY as a result. In 42 of 51 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 82%.
The 10-day Moving Average for CHWY crossed bearishly below the 50-day moving average on April 07, 2022. This indicates that the trend has shifted lower and could be considered a sell signal. In 4 of 6 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 67%.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 82%.
The Aroon Indicator for CHWY entered a downward trend on May 16, 2022. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 65%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.62.
The Tickeron PE Growth Rating for this company is 88 (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 Price Growth Rating for this company is 94 (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 Valuation Rating of 100 (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 (769.231) is very high in comparison to the industry average of (19.933). CHWY's P/E Ratio (1428.571) is considerably higher than the industry average of (97.426). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (3.022). Dividend Yield (0.000) settles around the average of (0.024) among similar stocks. P/S Ratio (1.313) is also within normal values, averaging (40.369).
The Tickeron SMR rating for this company is 100 (best 1 - 100 worst), indicating weak sales and an unprofitable 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 Profit vs. Risk Rating rating for this company is 100 (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 94, placing this stock worse than average.
The internet retail industry includes companies that sell products and services through the Internet. With more and more consumers using online retailers, the companies have seen a big increase in the use of their services. Some of the companies in the group are focused on selling business-to-business products and services. Others sell business-to-consumer products and services. Internet retailers offer a wide variety of products like books, apparel, and electronics. Some companies even specialize in only one or two categories. One potentially critical factor for players to thrive in this space is the quality and speed of product delivery. This requires an investment in efficient distribution networks. Things like logistics are important factors in the success in the extremely competitive industry. For a company to stay relevant in the industry it must have effective pricing strategies and upgraded websites. The websites must be easy to navigate and engaging for customers. In addition to the revenues generated from straight sales, internet retailers can generate revenue from subscription fees and advertising. Amazon.com, Inc., Alibaba Group, and JD.com are some of the global leaders.
The average market capitalization across the Internet Retail Industry is 21.2B. The market cap for tickers in the group ranges from 30 to 1.2T. AMZN holds the highest valuation in this group at 1.2T. The lowest valued company is YUKA at 30.
The average weekly price growth across all stocks in the Internet Retail Industry was 0.72%. For the same Industry, the average monthly price growth was -5.79%, and the average quarterly price growth was -30.99%. AHAHF experienced the highest price growth at 256.87%, while BHHOF experienced the biggest fall at -48.01%.
- 5/5/22 4:57 AM: Chewy (CHWY, $32.51) was a top weekly gainer, with a +5.48% jump
- 4/15/22 4:35 AM: Chewy (CHWY, $39.93) was a top loser this week, declining -8.4%
- 4/6/22 8:51 AM: Chewy (CHWY, $44.24) was a top loser this week, declining -13.25%. Expect a Downtrend reversal
The average weekly volume growth across all stocks in the Internet Retail Industry was 13.94%. For the same stocks of the Industry, the average monthly volume growth was 50.08% and the average quarterly volume growth was 5.7%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Stocks in the group have a Negative Outlook today, backed by the MA200MA50 Indicator. Tickeron has a negative outlook on this group and predicts a further decline by more than 4.00% within the next month with a likelihood of 57%. During the last month, the daily ratio of advancing to declining volumes was 1 to 1.44.
41 stocks in the group of tickers exhibit a similar negative trend based on the Momentum indicator with an average likelihood of 83%.
The most notable companies in this group are Amazon.com (NASDAQ:AMZN), Alibaba Group Holding Limited (NYSE:BABA), JD.com (NASDAQ:JD), Pinduoduo (NASDAQ:PDD), eBay (NASDAQ:EBAY), Chewy (NYSE:CHWY), Wayfair (NYSE:W), Vipshop Holdings Limited (NYSE:VIPS), Just Eat Takeaway.com NV (OTC:JTKWY), Revolve Group (NYSE:RVLV).
The average market capitalization across the group is 26.4B. The market cap for tickers in the group ranges from 0 to 1.2T. AMZN holds the highest valuation in this group at 1.2T. The lowest valued company is QRTEP at 0.
- 5/14/22 4:23 AM: Amazon.com (AMZN, $2,261.1), market cap jumped by $62.3B
- 5/10/22 5:36 AM: Amazon.com (AMZN, $2,175.78) saw a $159.8B market cap decrease this week
- 5/3/22 8:18 AM: Amazon.com (AMZN, $2,490) saw a $219.0B market cap decrease this week
The average weekly price growth across all stocks in the group was -0.18%. For the same group, the average monthly price growth was -16.49%, and the average quarterly price growth was -54.68%. CPNG experienced the highest price growth at 35.19%, while ID experienced the biggest fall at -35.57%.
- 5/14/22 4:23 AM: Coupang (CPNG, $13.34) was a top weekly gainer, with a +10.8% jump
- 5/14/22 4:23 AM: Poshmark (POSH, $12.04) was a top weekly gainer, with a +7.6% jump
- 5/14/22 4:23 AM: Blue Apron Holdings (APRN, $3.68) was a top weekly gainer, with a +13.23% jump
The average weekly volume growth across all stocks in the group was -34.74%. For the same stocks of the group, the average monthly volume growth was 4.04% and the average quarterly volume growth was 118.44%
- 5/14/22 4:16 AM: The volume for Yunji stock increased for three consecutive days, resulting in a record-breaking daily growth of 171% of the 65-Day Volume Moving Average
- 4/26/22 5:03 AM: The volume for Yunji stock increased for two consecutive days, resulting in a record-breaking daily growth of 226% of the 65-Day Volume Moving Average
- 4/23/22 4:12 AM: The volume for Yunji stock increased for one day, resulting in a record-breaking daily growth of 278% of the 65-Day Volume Moving Average
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows