Chewy Slumps 35% YTD as P/E Ratio Falls to 41 Before June 10 Earnings
CHWY•Chewy shares have slumped 35% year-to-date (55% over 12 months), trading near a 52-week low of $19.30, after its P/E ratio fell from 95 to 41. RBC Capital maintained an “Outperform” rating ahead of its June 10 earnings report, where analysts forecast $0.43 EPS.
1. Stock Performance Decline
Chewy’s share price has tumbled 35% year-to-date and 55% over the past 12 months, hovering near its 52-week low of $19.30 versus a high of $48.62. The company currently trades around $20.82 per share and has a market capitalization of approximately $8.62 billion.
2. Analyst Outlook and Valuation
On June 4, RBC Capital reaffirmed its Outperform rating on Chewy, citing a more attractive valuation after the price-to-earnings ratio contracted from 95 to 41. The lower P/E multiple reflects tempered investor expectations amid slower growth expectations.
3. Upcoming Earnings Expectations
Chewy is scheduled to report quarterly results on June 10, with the Zacks Consensus forecasting $0.43 in earnings per share and higher revenue, driven by the resilient nature of pet supplies spending. Market participants will watch for signs of margin expansion and customer retention trends.
