Checking in with Chewy Stock Before Earnings

One of our top stock picks for 2024, Chewy Inc (NYSE:CHWY) is set to report earnings before the open on Wednesday, Aug. 28. Though down 3% at $26.71 this afternoon, the equity is enjoying an 11.8% year-to-date lead. 

Chewy stock experienced a massive 27.1% post-earnings pop this past May, and has since risen even further, though it's been experiencing recent pressure at the $27 level. For this upcoming event, the options pits are pricing in a next-day swing of 18%, regardless of direction, which is larger than the 11.4% move CHWY's averaged over its last eight reports. 

CHWY calls have been more popular than usual, as earnings draw closer. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security's 10-day call/put volume ratio of 10.11 ranks higher than all other readings from the past year. 

Short interest has started to unwind as well, down 31.9% over the last month. Still, the 14.8 million shares sold short represent a hefty 12.2% of the stock's available float.