Chewy (CHWY) will release its fourth-quarter financial results after the market closes on March 29. The company is an online retailer of pet food and other pet-related products in the United States. Its stock has dropped approximately 42% in the last year.
For an e-commerce company like Chewy, total website visits are a good indicator of user involvement on Chewy’s platform. As a result, increasing user engagement on its platform could imply increased demand for Chewy’s products and services available on its website, meaning increased revenues and potential earnings.
To obtain a better understanding of Chewy’s current status, we used TipRanks’ new online tool to dig into the company’s monthly user numbers ahead of the Q4 print.
Website Visit Stats Reflects a Downward Trend
We discovered through the tool that overall projected visits to the Chewy website decreased in fiscal Q4. In particular, the total projected worldwide visits to chewy.com decreased by 5.05% sequentially from the third quarter.
The decrease in monthly visits could indicate that demand and consumer engagement on Chewy’s website remained weak during the fourth quarter, implying decreased net sales in the quarter-to-be reported.
In addition, on a year-over-year basis, website visits to chewy.com dropped 12.2% to 224.91 million in Q4.
Wall Street’s Take
Wall Street analysts are optimistic on Chewy, with a Moderate Buy consensus rating based on five Buys and five Holds assigned in the past three months. The average CHWY stock prediction of $62.67 implies an upside potential of approximately 36.5% from its current price.
Bottom Line
Despite the fact that website traffic data implies lower fourth-quarter revenues, Chewy’s efficient business model, great execution, and favorable trends in pet ownership could lead to better-than-expected earnings outcomes, making investors happy.
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