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Chico's FAS (CHS) Dips More Than Broader Markets: What You Should Know

This story originally appeared on Zacks

Chico’s FAS (CHS) closed the most recent trading day at $4.53, moving -0.88% from the previous trading session. This move lagged the S&P 500’s daily loss of 0.38%. At the same time, the Dow lost 0.5%, and the tech-heavy Nasdaq lost 0.05%.

– Zacks

Prior to today’s trading, shares of the clothing chain had lost 4.59% over the past month. This has was narrower than the Retail-Wholesale sector’s loss of 6.47% and the S&P 500’s loss of 6.25% in that time.

Wall Street will be looking for positivity from Chico’s FAS as it approaches its next earnings report date. On that day, Chico’s FAS is projected to report earnings of $0.05 per share, which would represent year-over-year growth of 113.89%. Meanwhile, our latest consensus estimate is calling for revenue of $498 million, up 28.95% from the prior-year quarter.

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 a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Chico’s FAS is currently sporting a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Chico’s FAS has a Forward P/E ratio of 10.88 right now. Its industry sports an average Forward P/E of 10.82, 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 172, putting it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.

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