Chegg (CHGG) closed the most recent trading day at $71.24, moving -0.04% from the previous trading session. This change was narrower than the S&P 500’s daily loss of 1.08%. At the same time, the Dow lost 1.51%, and the tech-heavy Nasdaq lost 0.86%.
Heading into today, shares of the provider of online textbook rental services had gained 23.43% over the past month, outpacing the Computer and Technology sector’s gain of 5.89% and the S&P 500’s loss of 0.3% in that time.
Investors will be hoping for strength from CHGG as it approaches its next earnings release. In that report, analysts expect CHGG to post earnings of $0.34 per share. This would mark year-over-year growth of 47.83%. Our most recent consensus estimate is calling for quarterly revenue of $136.76 million, up 45.7% from the year-ago period.
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.
Investors might also notice recent changes to analyst estimates for CHGG. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.08% higher. CHGG is currently a Zacks Rank #3 (Hold).
Digging into valuation, CHGG currently has a Forward P/E ratio of 59.18. Its industry sports an average Forward P/E of 69.55, so we one might conclude that CHGG is trading at a discount comparatively.
We can also see that CHGG currently has a PEG ratio of 1.97. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. CHGG’s industry had an average PEG ratio of 3.86 as of yesterday’s close.
The Internet – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 52, which puts it in the top 21% 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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