As Chewy Inc. (NYSE: CHWY) prepares to release its second-quarter fiscal 2024 earnings on Aug 28 before the opening bell, investors are keenly evaluating whether the stock offers a compelling investment opportunity. The pet-centric e-commerce company has attracted significant attention, thanks to its robust growth trajectory and strategic initiatives. However, with the earnings just around the corner, it is crucial to determine whether Chewy remains a wise investment opportunity at this stage.
Chewy's impressive growth, solid market position and loyal customer base have cemented its popularity among investors. The Zacks Consensus Estimate places revenues at $2.86 billion for the upcoming quarter, suggesting a 2.8% increase from the year-ago period.
On the earnings front, the consensus estimate has held steady at 22 cents a share over the past 30 days, implying a substantial 46.7% year-over-year increase.
Image Source: Zacks Investment Research
Chewy has a strong track record, with an average earnings surprise of 57.7% over the past four quarters. In the last reported quarter, the company exceeded the Zacks Consensus Estimate by an impressive margin of 47.6%.
Chewy Price, Consensus and EPS Surprise
Chewy price-consensus-eps-surprise-chart | Chewy Quote
What Zacks Model Says About CHWY
Our proven model predicts that Chewy is likely to beat earnings this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case ...
