Chico's FAS (CHS) Gains As Market Dips: What You Should Know

Chico's FAS (CHS) closed at $4.84 in the latest trading session, marking a +0.41% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.42%. Elsewhere, the Dow lost 0.49%, while the tech-heavy Nasdaq lost 0.47%.

Heading into today, shares of the clothing chain had lost 4.18% over the past month, lagging the Retail-Wholesale sector's loss of 3.85% and the S&P 500's gain of 0.39% in that time.

Wall Street will be looking for positivity from Chico's FAS as it approaches its next earnings report date. In that report, analysts expect Chico's FAS to post earnings of $0.05 per share. This would mark year-over-year growth of 113.89%.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.37 per share and revenue of $1.82 billion. These totals would mark changes of +111.9% and +37.66%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Chico's FAS. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. Chico's FAS is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Chico's FAS has a Forward P/E ratio of 13.2 right now. Its industry sports an average Forward P/E of 12.39, so we one might conclude that Chico's FAS is trading at a premium comparatively.

The Retail - Apparel and Shoes industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 85, putting it in the top 34% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Chico's FAS, Inc. (CHS) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.

Advertisement