Chewy, Inc.·Consumer Cyclical

Chewy (CHWY) is upgraded to Strong Buy as the valuation implies a major margin of safety that doesn't seem justified by current macro headwinds. CHWY's fundamentals remain solid, with 14% Autoship sales growth, $562M FCF, and a nearly spotless balance sheet. Recent acquisition of Modern Animal and a $500M buyback expansion enhance growth prospects and shareholder returns.

Fueled by fast sales and earnings growth, Chewy's stock price soared during the early days of the pandemic. Growth has returned to a more reasonable pace.

CHWY's AI investments, recurring Autoship sales and vet care expansion are fueling optimism despite recent stock weakness.

Once a year, the results of “The 2026 Axios Harris Poll 100 reputation rankings” are released in May.

Chewy, Inc. (CHWY) Presents at J.P. Morgan 54th Annual Global Technology, Media and Communications Conference Transcript

The GARP strategy helps investors gain exposure to stocks that have solid prospects and are trading at a discount. TPR, CHWY, ROST and NVDA are some such stocks.
Chewy, Inc., together with its subsidiaries, engages in the pure play e-commerce business in the United States. The company provides pet food and treats, pet supplies and pet medications, and other pet-health products, as well as pet services for dogs, cats, fish, birds, small pets, horses, and reptiles through its www.chewy.com retail Website, as well as its mobile applications. It offers approximately 100,000 products from 3,000 partner brands. The company was founded in 2010 and is headquartered in Dania Beach, Florida.
Consumer Cyclical
Specialty Retail
18,000
2019-06-14
1.50