S&P 500 Index Earnings: Chewy Will Describe the Pet Fad During the PandemicGamestop could show the relevance of video games
Chewy, Inc., (CHWY) is a pure-play pet e-commerce business in the United States. The company provides pet food and treats, pet supplies and pet medications, and other pet-health products. During the quarantine, pet sales surged helping the company to gain traction. Chewy is scheduled to release its Q1 financial results after the bell on Tuesday, June 9, 2020. The company is expected to lose $0.16 per share on 1.53 billion in revenue. This compares to a $0.02 gain in the prior quarter. Earnings estimates have remained unchanged over the past 30-days which is good news for the stock price.
The stock price is forming a bull flag continuation pattern near the 52-week high. A better than expected number and positive guidance will help buoy the shares pushing them to all-time highs.
Game Stock Corp. (GME) operates as a multichannel video game, consumer electronics, and collectibles retailer in the United States. The company sells new and pre-owned video game platforms in the retail space. During the pandemic, video games were very popular allowing the company to experience solid sales. The company is expected to lose $0.67 per share on 1.08 billion in revenue. This compares to $0.79 per share in the prior quarter. Earnings estimates over declined $0.21 per share over the past 30-days which is a negative sign for the stock price. Growth is expected to decline by more than 1,000% in the current quarter.
The stock price has rebounded more than 50% of the losses that it experienced in March but remains in the middle of the range. With little foot traffic to rely on in the next couple of months, the shares a likely to underperform some of its rivals.
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