Chegg (CHGG) closed the most recent trading day at $69.20, moving -1.79% from the previous trading session. This move lagged the S&P 500’s daily gain of 1.34%. Elsewhere, the Dow gained 2.13%, while the tech-heavy Nasdaq added 0.94%.
Heading into today, shares of the provider of online textbook rental services had gained 18.68% over the past month, outpacing the Computer and Technology sector’s gain of 7.45% and the S&P 500’s gain of 3.92% in that time.
Wall Street will be looking for positivity from CHGG as it approaches its next earnings report date. This is expected to be August 3, 2020. In that report, analysts expect CHGG to post earnings of $0.34 per share. This would mark year-over-year growth of 47.83%. Meanwhile, our latest consensus estimate is calling for revenue of $136.76 million, up 45.7% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.20 per share and revenue of $554.05 million. These totals would mark changes of +31.87% and +34.83%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for CHGG. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.08% higher. CHGG currently has a Zacks Rank of #3 (Hold).
In terms of valuation, CHGG is currently trading at a Forward P/E ratio of 58.51. This represents a discount compared to its industry’s average Forward P/E of 66.09.
It is also worth noting that CHGG currently has a PEG ratio of 1.95. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. CHGG’s industry had an average PEG ratio of 3.73 as of yesterday’s close.
The Internet – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 69, putting it in the top 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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