From a technical standpoint, Chewy (CHWY) is looking like an attractive investment opportunity. The stock has recently crossed above its 20-day moving average, a key indicator of short-term bullish trends. This technical signal suggests that CHWY could be poised for further gains in the near future.
The 20-day simple moving average is a popular tool among traders. It provides a snapshot of a stock’s price performance over the past 20 days, smoothing out short-term price fluctuations and providing clearer trend reversal signals compared to longer-term moving averages. When a stock’s price moves above its 20-day moving average, it is generally considered a positive signal, indicating a potential upward trend. Conversely, falling below the moving average can signal a downward trend.
Over the past four weeks, CHWY has experienced a strong upward momentum, gaining 13.3%. Adding to this positive technical signal, Chewy is currently ranked a Zacks Rank #2 (Buy), another strong indication that the stock could move even higher. This Zacks Rank, based on a proprietary formula that evaluates a company’s earnings estimate revisions, suggests that CHWY has a solid foundation for continued growth.
Analyzing CHWY’s earnings estimate revisions further reinforces the bullish sentiment. There have been six upward revisions to the company’s earnings estimates for the current fiscal year, compared to no downward revisions. This positive trend in earnings estimates reflects investor confidence in Chewy’s future prospects.
With a combination of favorable technical indicators, a strong Zacks Rank, and positive earnings estimate revisions, CHWY appears to be well-positioned for further gains in the near future. Investors seeking exposure to the pet care industry should consider closely monitoring CHWY’s performance in the coming weeks.
