Core Viewpoint - Chewy Inc (NYSE:CHWY) is considered a strong e-commerce investment, with Piper Sandler maintaining an Overweight rating and setting a price target of $48.00, influenced by concerns regarding pet ownership and BC Partners' significant stake [1] Group 1: Earnings and Guidance - Chewy Inc's 2025 earnings are expected to align more closely with consensus expectations, showing only a 3% EBITDA beat year-to-date compared to a 22% average beat in 2024 [2] - The company is anticipated to adopt a conservative approach for 2026, guiding for 7-8% sales growth against the Street's expectation of 8% [2] - Chewy is likely to maintain a consensus EBITDA margin of 6.6%, with potential upside from improved leverage [2] Group 2: Market Sentiment and Price Targets - Morgan Stanley raised its price target for Chewy Inc to $51 from $48 while keeping an Overweight rating, suggesting a positive outlook for 2026 in the internet sector [3] - Goldman Sachs also sees long-term upside for Chewy, raising its target to $52 [7] Group 3: Company Overview - Chewy Inc operates as an online retailer specializing in pet food and related products, offering a range of services including Chewy Pharmacy and veterinary connections [4]

Core Viewpoint - Chewy's stock has experienced significant volatility, but the company has maintained revenue growth, positioning it as a potential value stock for investors [1][10]. Company Performance - Chewy has successfully differentiated itself from competitors like Amazon through superior customer service and competitive pricing, which contributed to its stock price surge during the pandemic [3]. - Despite the stock price decline in 2021, Chewy has continued to grow, expanding its business model to include veterinary telehealth services and pharmaceuticals for pets [4]. Financial Metrics - In the first nine months of fiscal 2025, Chewy reported revenue of $9.3 billion, an 8% increase year-over-year, while operating income rose to $212 million, a 74% increase from $122 million in the same period of fiscal 2024 [5]. - Analysts project revenue growth of 6% for the current fiscal year and 8% for fiscal 2027, which may exert downward pressure on valuation metrics if the stock remains stagnant [6]. Valuation Insights - Chewy's market capitalization stands at $12 billion, with a current price-to-sales (P/S) ratio of 0.9, down from a peak of 7 in 2021, indicating a significant drop in valuation [8]. - Although the price-to-earnings (P/E) ratio is 55, the forward P/E ratio of 17 suggests that the stock may be undervalued, especially given the company's ongoing financial improvements [9]. Investment Consideration - After a prolonged period of decline and stagnation, Chewy stock may be poised for recovery, making it an attractive investment opportunity before broader market recognition of its growth and low valuation [10][11].

Amazon (AMZN) isn’t off to a great start for the new year, with the security losing 9% of equity value. Nevertheless, this performance doesn’t seem to be dissuading the smart money, at least when looking at volatility skew, one of the many screeners available for Barchart Premier members. This tool represents one of the most important first-order analytics because it showcases implied volatility (IV) across the strike price spectrum of a particular options chain.For this article, we will look at three poten ...

We recently published an article titled 12 High Growth E-commerce Stocks To Buy.  On January 13, Morgan Stanley raised its price target on Chewy to $51 from $48 while maintaining an Overweight rating on the shares. In a broader note on the North America Internet sector, the firm highlighted that 2026 is likely to resemble 2025, with investors favoring companies that can demonstrate meaningful returns on invested capital, particularly those leveraging GenAI- or GPU-enabled technologies. Within this framewo ...

It's been a tough past five years for online pet supply store Chewy's (NYSE: CHWY) shareholders. While the stock soared during and because of the onset of the COVID-19 pandemic, it peaked in early 2021. The stock now trades down more than 80% from that high, in fact, after peeling back from a failed recovery effort in 2024. Investors are understandably losing hope. This may be the exact right time to take a fresh look at this scrappy small cap, though. Its growth rate still isn't heroic, but its long-ter ...

Chewy and Dutch Bros are two top growth stocks to buy in February.The tech space isn't the only sector to find attractive stocks to buy this month. Consumer stocks also have some attractive growth options. Let's look at two stocks to buy this month. ChewyE-commerce pet retailer Chewy (CHWY 4.58%) is a nice combination of a growth stock with a recession-resistant business. Meanwhile, the stock is attractively valued, trading at a forward price-to-earnings (P/E) multiple of just 18.5 times fiscal 2026 estimat ...

Ryan Cohen’s investment experience, at least as it relates to his ability to run a holding company that invests in both public and private companies, began after he sold Chewy (CHWY), the online pet products business he co-founded, to PetSmart in 2017 for $3.35 billion.By 1969, Buffett closed the partnership, telling his limited partners that there weren’t enough good investments available due to the lengthy market run-up. Over the 13 years of the partnership, his limited partners received a cumulative retu ...

You probably know Chewy as an online retailer of pet products, but it also offers pet insurance. Chewy partners with Lemonade (3 stars) and Trupanion (2.3 stars) — two of the biggest pet insurers — to offer comprehensive pet insurance through its CarePlus suite of wellness and insurance plans. Learn more: The best pet insurance companies Chewy pet insurance pros and cons Pros Option for unlimited annual coverage through Trupanion 100% coverage for prescription food and medications purchased from C ...

Core Insights - Chewy is a niche player in the pet industry, while Walmart offers a broader range of retail products, including pet supplies [1][2] - The pet care market is projected to grow at a 5.1% CAGR until 2030, but Chewy's reliance on the low-margin pet industry raises concerns about its growth potential compared to Walmart [2][3] Company Performance - Chewy has low net profit margins, typically in the low single digits, while Walmart's margins range from 3% to 4% [3][11] - Chewy is diversifying into pet health, which has a higher average net profit margin of 20%, and currently operates over 20 veterinary practice locations [4] - Chewy's stock has decreased by nearly 70% over the past five years, reflecting challenges in maintaining growth post-pandemic [10] Financial Metrics - Chewy's current market cap is $12 billion, with a P/E ratio of 67, while Walmart's market cap is $950 billion with a P/E ratio of 42 [5][9][10] - Walmart's revenue growth was 5.8% year-over-year in Q3 FY26, compared to Chewy's 8.3% in its third quarter of fiscal 2025 [8] - Walmart's global advertising sales increased by 53% year-over-year in Q3 FY26, providing potential for profit growth despite low sales growth [7] Competitive Position - Chewy offers pure exposure to the pet industry, but Walmart's broader customer base and competitive advantages position it for higher long-term gains [12]

Group 1 - Chewy Inc (NYSE:CHWY) is considered one of the best large-cap stocks under $100, with a significant upside potential of approximately 49% based on a median 1-year price target of $47.19 [1] - The stock has received coverage from 18 analysts, with 16 assigning Buy ratings and 2 giving Hold calls, indicating a highly bullish sentiment towards the company [1] - Analyst Shweta Khajuria from Wolfe Research reaffirmed an Outperform rating on Chewy, lowering her price target from $46 to $44, which still suggests around 39% upside potential [2] Group 2 - Khajuria's optimism for Chewy is based on a positive outlook for Internet stocks in 2026, although she cautions that the upcoming year may not see the same level of outperformance due to stretched valuations [3] - Chewy operates as an e-commerce retailer focused on pet health products and services, generating 70% of its business revenues through its popular "Autoship" service [4] - The company offers products from over 3,500 brands via a high-volume automated distribution network, highlighting its extensive market reach [4]